INCOME TAX29 Sept 2026
Do homebuyers lose claim to interest on delayed flat once you accept possession? Here's what Allahabad HC ruling states… | Mint
The Allahabad High Court has ruled that homebuyers who accept possession of a delayed flat can still claim interest for the delay. RERA, the Real Estate Regulation and Development Act, sets no time limit for such claims. This affects anyone whose builder handed over a flat late. Keep your booking and payment records, and consult a lawyer before settling.
Key Statutory Highlights
- The Allahabad High Court held that accepting possession of a delayed flat does not stop a homebuyer from claiming interest for the delay.
- The court noted that RERA does not state any limitation period for claiming interest on delayed possession.
- The court rejected the developer's plea that a National Green Tribunal order caused the delay, since the builder had already missed the November 2012 deadline.
- The court upheld the order directing the developer to pay interest at 1% above the Marginal Cost of Fund Based Lending Rate (MCLR) for December 2012 to May 2017.
Actionable Advice for Taxpayers / Founders:If your builder handed over your flat late, keep your booking, payment and possession papers safe, and speak to a lawyer or RERA expert about claiming interest before you sign any settlement or waiver.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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