Supreme Court bars double compensation for homebuyers on builder delay

The Supreme Court has ruled that a homebuyer cannot claim both interest on a full refund and rent reimbursement for the same delay by a builder, as that would amount to double compensation for the same default. A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe directed the builder Lodha Healthy Constructions to refund Rs 1,27,34,726 with 12% simple interest from the dates of payment, and separately awarded Rs 15 lakh covering rent, mental agony, harassment and litigation costs.

The Court held that interest at 12% per annum compensates the buyer for being deprived of the use of his money, which he could have used to secure a home. Awarding rent on top of that would compensate him twice for the same loss. The homebuyer had booked an apartment in the builder's 'Lodha Bellezza' project in Hyderabad in 2009 but did not get possession despite the builder receiving nearly 95% of the sale consideration. The ruling came in appeals against a National Consumer Disputes Redressal Commission order.