India, Sept. 26 -- The Supreme Court has ruled in favour of homebuyers, holding that developers who delay handing over possession can be charged the same rate of interest that they themselves impose on buyers for late payments. Citing the 'long wait of over a decade' that caused 'harassment and anxiety' to the buyer, the court observed the refund of the principal amount with interest at the rate of 9% per annum awarded by the consumer court was inadequate and directed the developer to refund the principal amount along with interest at the higher rate within two months.

It should be noted that real estate developers impose an 18% interest on buyers for delayed payments.

"There is no principle of law that interest in default charged by th...