The Supreme Court recently reinforced the rights of homebuyers in recent cases. Importantly, it declared “right to housing” as a fundamental right under Article 21, urging governments to create a revival fund for stressed real estate projects. These developments strengthen the legal recourse available to buyers facing construction delays or project failures. Let us look at prominent recent cases.
Interest Liability
In a recent judgement, the Supreme Court ordered a developer to refund a homebuyer with 18% simple interest — matching the rate the builder had charged the buyer for late payments. In this case, the buyer had paid around ₹43 lakh and was denied possession for over a decade. While lower consumer fora had awarded them relief, the Supreme Court enhanced the interest rate to 18% per annum on the builder, who had charged the same rate for delayed installments. The bench found it unjust that the developer had deployed double standards.
Earlier landmark rulings that defined homebuyer rights include:
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Wg. Cdr. Arifur Rahman Khan & Ors. v. DLF Southern Homes Pvt. Ltd. (Supreme Court, 2020) |
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DLF Home Developers / other Supreme Court precedents (2019–2021) | A set of SC/NCDRC decisions over recent years have clarified
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State Consumer Commissions / RERA & Appellate Tribunals |
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Mixed holdings on loan interest reimbursement |
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Documentation (the sale agreement, communications about timelines, and regulatory orders (RERA findings, NCDRC awards)) is thus important in shaping the outcome of cases.
Right to Housing
In a decision that will shape property litigation for the foreseeable future, the Supreme Court held that “the right to housing is a facet of the fundamental right to life under Article 21”. The court urged the Union government to establish a revival fund to provide interim bridge financing to stressed real estate projects, so that otherwise viable projects are not liquidated and genuine homebuyers' life savings do not go in vain. The ruling directs periodic audits and public disclosure to guard against misuse.
Together, these rulings underscore that homeownership is more than a contract — it intersects with the constitutional rights of citizens.
How to file a RERA / Consumer Complaint
Document Everything | Preserve
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RERA Complaint |
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District or State Consumer Forum / National Consumer Disputes Redressal Commission |
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Approach Higher Courts |
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Get Legal Representation Early |
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What this means for Homebuyers & Developers
Delayed possession refund interest | Now more forcefully enforceable — developers can’t escape liability just because delays were long, |
Right to Housing as part of Fundamental Right to Life | This converts project defaults from mere contractual disputes to a question of fundamental rights. |
RERA and Consumer remedies | Crucial tools for homebuyers; timely action can convert judgments into enforceable relief. |
Developers must act responsibly |
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Keywords: delayed possession refund interest, right to housing fundamental right, housing under Article 21, promoter delay interest order, homebuyer rights India, RERA complaint procedure, consumer forum builder compensation, real estate revival fund, constitutional housing judgment, refund 18% Supreme Court
