Got keys to your home after years of delay? You may still claim interest for lost time

Homebuyers can seek interest compensation for delays in property possession from developers.

Got keys to your dream home after years of waiting? You may still be able to claim interest for the delay. Homebuyers who take possession of a delayed property can still claim interest for the period during which the developer failed to deliver the flat on time.In a recent order, the Lucknow bench of the Allahabad High Court, presided over by Justice Prashant Kumar, dismissed an appeal by Antriksh Developers and Promoters Pvt Ltd in a dispute over its Antriksh Golf View project in Sector 78, Noida.The court upheld the direction to pay interest to homebuyer Shyam Sunder Agrawal, even though he had accepted possession of the flat.Here’s what happened:Agrawal had booked the flat in 2010, with possession contractually due by November 2012.

The developer offered possession only in May 2017. The court also noted that the possession offer was made without the occupancy certificate and other necessary documents. The Uttar Pradesh RERA Appellate Tribunal had directed the developer to pay interest on the amount deposited by the buyer from December 2012 to May 2017 at one percentage point above the Marginal Cost of Fund Based Lending Rate, or MCLR.The court also considered the developer's claim regarding the NGT-related "zero period".

It held that any exclusion could apply only to the period actually affected by the restriction and could not wipe out a delay that had already occurred before the restriction came into force.Failure in delivering project: What RERA saysSection 18 of the Real Estate (Regulation and Development) Act, 2016 deals with delayed possession. If a buyer wants to withdraw from a project because of the developer's failure to give possession according to the agreement, the law provides for return of the amount paid along with prescribed interest and compensation.If the buyer does not want to withdraw, the law provides for interest for every month of delay until possession is handed over.The Allahabad HC ruling therefore draws an important distinction between accepting possession and giving up a claim for delay interest. Taking the flat does not, by itself, extinguish the statutory claim for the period of delay.For buyers, the key documents include the agreement for sale, contractual possession date, payment records, possession letter and occupancy or completion documents. The exact interest rate and period for which interest is payable can depend on the applicable RERA rules, contractual terms, court orders and facts of the case.