1. Relief for DLF in Valley Project in Panchkula as Supreme Court cuts penalty interest

Relief for DLF in Valley Project in Panchkula as Supreme Court cuts penalty interest

In a breather to real estate giant DLF, the Supreme Court on Friday reduced the penalty interest payable by the company for the delay in giving possession of residential flats in its Valley Project in Panchkula to buyers.

By: | New Delhi | Published: August 27, 2016 6:18 AM
SC asks DLF to give possession to Panchkula Valley home buyers by Nov 30 A bench headed by justice Dipak Mishra asked the developer to pay buyers 9% interest, against 12% per annum as directed by the National Consumer Disputes Redressal Commission (NCDRC).(Reuters)

In a breather to real estate giant DLF, the Supreme Court on Friday reduced the penalty interest payable by the company for the delay in giving possession of residential flats in its Valley Project in Panchkula to buyers.

A bench headed by justice Dipak Mishra asked the developer to pay buyers 9% interest, against 12% per annum as directed by the National Consumer Disputes Redressal Commission (NCDRC).

“This 9% interest will be calculated from the expiry of three years of agreement, and only if DLF fails to give possession of flats by November 2016,” the bench said in its order. Friday’s directions are limited to only 50 buyers that were parties before the NCDRC.

The judges further clarified that this slash in interest rate will not set a precedent for other cases that will be heard in the future.

DLF had challenged the commission’s order that pulled up the company for delay in handing over flats.

The buyers had booked properties in DLF’s Valley Project comprising over 1,400 residential plots and flats and the possession was to be given in 2012.

DLF informed the court that they would give possession to all those who had booked these properties in Panchkula by November-end.

“We have already given possession for 1,300 (plots and flats). Possession for 156 buyers is remaining which will be handed over by November-end,” DLF’s counsel Kapil Sibal informed the court.

Meanwhile, the bench asked Parsvnath Developers to submit a schedule for refund of money to 70 buyers who had booked flats in its Parsvnath Exotica project in Ghaziabad.

Senior counsel Dushyant Dave, appearing for Parsvnath, on Friday told the Supreme Court that they were in a serious “financial difficulty” as it suffered a loss of around R400 crore last year.

He also said that the builder will hand over possession of flats to buyers within a year.

Parsvnath Developers has moved the Supreme Court against the apex consumer commission’s order asking it to refund the money to 70 buyers along with interest.

Around 854 flats were to be constructed in the project and 818 buyers had booked the flats.

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