That a homebuyer is eligible to claim compensation for delay in handing over of property, is known. But, can he/ she seek compensation for the interest paid on home loans and for appreciated value of an unfinished project? A recent order by The Tamil Nadu Real Estate Regulatory Authority (TNRERA) says ‘no’.
The state’s real estate regulator has rejected a plea in this regard. The homebuyer was, however, awarded usual compensation as per the Real Estate Act provisions.
The case relates to a housing project executed by Canara Bank Officers Union to four homebuyers at Madukkarai, in the suburbs of Coimbatore. In a recent order, G Saravanan, adjudicating officer of TNRERA, said the complainants entered into agreements of sale and construction separately on August 1, 2013, with the developer for the project named ‘Grand Hills Apartments/CBOU Enclave’.
The developer had agreed to complete construction and handover the apartments within two years from the date of agreement.
“Till date, the flats have not been handed over. Buyers have been put to loss and hardship as they have availed home loans,” the order said. Therefore, the complainants are entitled to get compensation for the delay, it added.
The realty regulator, however, refused to entertain a plea from the complainants seeking compensation for payment of interest for the home loans. “In view of appreciation of the value of the property, the complainants cannot claim compensation for payment of interest on home loans availed for purchase of flats. Hence, the claims for compensation on interest payment on home loans are rejected,” the order said.
Further, the authority refused to fix Rs 12,500 as rental loss per month for a period of four years the homebuyers sought. “In the absence of evidence on rental rate, Rs 10,000 per month is reasonable. The complainant is entitled for compensation of Rs 4.80 lakh and Rs 20,000 as litigation expenses,” the TNRERA said. The order added that the developer must pay the compensation within 60 days.