New Delhi: The Supreme Court on Monday directed Unitech Residential Resorts Ltd in the capital to deposit 14 per cent interest for the principal amount collected from 39 buyers who were not allotted their flats within the stipulated time.
In October last, the apex court had held that a property developer cannot delay the grant of possession of flats to the buyers beyond the period of contract and if there is delay the buyers are entitled for refund of their amount. The court had directed the builder to deposit Rs 17 crore towards principal.
During the resumed hearing on Monday, a three-judge bench of Justices Dipak Misra, A.M. Kanwilkar and Santanagouder ordered payment of 14 per cent interest from January 1, 2010, taking note of the “voice of anguish” of the respondent-allottees that they have lost their entire savings and were waiting for the flats for more than seven years. It said the deposit should be made within eight weeks and 90 per cent of this amount should be returned to the buyers.
The court will decide whether besides interest the buyers are also entitled to get compensation towards loss of rental income.
The court had said the appellant builder by delaying or procrastinating the completion of the flats cannot base its stand on excuses or any subterfuge to advance the stand that the constructions take time. It said the voice of anguish is echoed in the court room as they say their dreams have been shattered and they have been constrained to pave the path of impecuniosity and hence they deserve compensation.
