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Default on part of homebuyers no ground to deny refund in a delayed project: SC

The ruling in a Faridabad case gives relief to buyers of stalled projects who stop payments when they do not see any progress in the construction of the project or the possibility of timely delivery.

The case involved a builder in Faridabad, Haryana, who was appealing an earlier decision by the National Consumer Disputes Redressal Commission (NCDRC) to refund the entire amount paid by two buyers after possession of the property was not handed over on time. (Representative Image)

The case involved a builder in Faridabad, Haryana, who was appealing an earlier decision by the National Consumer Disputes Redressal Commission (NCDRC) to refund the entire amount paid by two buyers after possession of the property was not handed over on time. (Representative Image)

The Supreme Court has ruled that default on the part of homebuyers is not a ground for denying refund in a delayed project, giving relief to buyers who stop payments when construction timelines are not met.

The case involved a builder in Faridabad, Haryana, who was appealing an earlier decision by the National Consumer Disputes Redressal Commission (NCDRC) to refund the entire amount paid by two buyers after possession of the property was not handed over on time.

The buyers had filed a case in the consumer court and sought a refund of the amount paid to the builder.

The NCDRC had directed the builder to refund the entire amount deposited by the buyers along with delay compensation at the rate of 10 percent per annum on the deposited amount from the respective dates of deposits till realisation, within two months of the order.