SC: Homebuyer seeking refund can't ask builder to reimburse loan interest

NEW DELHI: Supreme Court has held that a homebuyer, who seeks refund owed to hold successful completion of a project, cannot assertion that a developer besides reimburse the magnitude paid arsenic involvement connected location loan.

The purchaser is lone entitled to the main magnitude paid to a institution and a 'compensation' successful presumption of the involvement connected the said magnitude arsenic per the agreement, it said. It acceptable speech a user tribunal bid directing the Greater Mohali Area Development Authority to reimburse the involvement paid by a homebuyer to a slope connected location indebtedness successful summation to refunding the main magnitude with 8% interest.SC: How purchaser funds level bargain not developer's consideration A seat of Justices Sanjay Karol and Prasanna B Varale said determination cannot beryllium aggregate heads to assistance damages and involvement implicit and supra what is agreed upon betwixt the homebuyer and the builder.Referring to assorted SC verdicts, the seat said determination were nary exceptional oregon beardown reasons for directing GMADA to wage the involvement connected the indebtedness taken by the homebuyer.The seat said, "Whether buyers of the level bash truthful by utilising their savings, taking a indebtedness for specified intent oregon securing the required finances by immoderate different permissible means, is not a information that the developer of the task is required to support successful mind.

"For, truthful acold arsenic they are concerned, specified a information is irrelevant. The 1 who is buying a level is simply a consumer, and the 1 who is gathering it is simply a work provider. That is the lone narration betwixt the parties."If determination is simply a deficiency oregon hold successful service, the user is entitled to beryllium compensated for the same. Repayment of the full main magnitude on with 8% involvement thereon, arsenic stipulated successful the contract, alongside the clarification that determination shall beryllium nary different liability connected the authority, sufficiently meets this requirement."In this case, the Punjab State Consumer Disputes Redressal Commission had directed GMADA to refund the full magnitude of Rs 41 lakh on with involvement astatine the complaint of 8%, isolated from compensation of Rs 60,000 to the purchaser for the intelligence hostility and harassment suffered by him, successful summation to reimbursing the involvement paid by the purchaser to banks connected location loan. The tribunal said erstwhile the parties had agreed for a peculiar effect of hold successful handing implicit of possession, past determination had to beryllium exceptional and beardown reasons to grant compensation astatine much than the agreed rate.