In a significant development, the Supreme Court has directed Lodha Crown Buildmart, a subsidiary of Macrotech Developers (Lodha), to refund Rs 2.25 crore to a homebuyer within 12 months, accompanied by a simple interest of 12 percent per annum. The ruling is in response to the alleged delay in handing over possession of a 1,966-sqft apartment purchased in November 2013.
Key Details:
- Homebuyer Venkataraman Krishnamurthy acquired a 4-BHK apartment in the Lodha Evoq project for Rs 7.55 crore.
- As per the payment schedule, the buyer paid Rs 2.25 crore, with the balance of Rs 5.83 crore due on the initiation of fit-outs.
- The agreement specified a possession date for fit-outs by June 30, 2016, extendable to June 30, 2017. Allegedly, the possession was not delivered as agreed, leading to the termination of the agreement by the buyer.
Legal Proceedings:
- The National Consumer Disputes Redressal Commission (NCDRC) disposed of the buyer’s complaint in November 2022, directing the developer to deliver possession within three months.
- The NCDRC ordered the developer to pay simple interest at 6 percent per annum on the total amount paid for the delayed possession period.
- The NCDRC rejected the claim for a refund, stating the delay was not “unreasonable” to warrant agreement termination.
Supreme Court’s Intervention:
- The SC, on February 22, set aside the NCDRC order, emphasizing the binding covenants in the agreement.
- The court criticized the NCDRC for overstepping its jurisdiction and rewriting contract terms, directing a refund of Rs 2.25 crore with 12 percent per annum interest within 12 months.
Developers’ Response:
- An email query sent to Macrotech Developers did not elicit a response at the time of filing.
