Interest charged for default by buyer cut
5 years ago

Interest charged for default by buyer cut

The Hindu  

Tamil Nadu Real Estate Regulatory Authority ruled that 18% interest charged by a builder from a home buyer for delay in payment was unfair and one-sided and slashed it to 10.20%. The developer had also told the buyer that it would charge 18% interest for the delayed payment as per the construction agreement. Therefore, the compensation and interest in Clause-5 and Clause-13 respectively was extremely unfair and one-sided and fall within the definition of ‘unfair trade practice’ under Section-2 of the Consumer Protection Act, 1986 following the dictum laid down by the Supreme Court and the National Consumer Redressal Commission, New Delhi, it added. Therefore, the Authority directed that the interest rate of 10.20% prescribed by it under the Real Estate Act 2016, shall be adopted by the builder for delayed payment by the buyer.

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History of this topic

Karnataka RERA Holds Shrivision Homes Liable For Delayed Possession, Orders 30.2 Lakhs Interest To Homebuyer
4 weeks, 2 days ago

Karnataka RERA Holds Shrivision Homes Liable For Delayed Possession, Orders 30.2 Lakhs Interest To Homebuyer

Live Law  

Karnataka Real Estate Regulatory Authority bench, comprising GR Reddy, has directed M/S Shrivision Homes Pvt. Background Facts Homebuyer booked a flat in the Tower 5 of builder's project named Shriram Chirping Woods located at Bengaluru Urban District. Observation and Direction by Authority The authority observed that despite entering into a sale and construction agreement to hand over possession of the …

Rate Of Interest In A Contract May Be Modified By The Court On Equitable Grounds: Andhra Pradesh High Court
2 years, 9 months ago

Rate Of Interest In A Contract May Be Modified By The Court On Equitable Grounds: Andhra Pradesh High Court

Live Law  

The Andhra Pradesh High Court recently ruled that where the rate of interest is fixed in the contract, it would be open to the Court to vary the rate of interest from the date of the suit till the date of recovery of the amount on equitable grounds, if the amount of interest is exorbitant. Issue of law The only …

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