India, June 12 -- The Supreme Court has ruled that homebuyers seeking a refund for delayed projects cannot demand reimbursement from the developer for the interest paid on their home loans. The buyer is entitled only to a refund of the principal amount paid to the builder, along with compensation contractually agreed between the homebuyer and the developer.

A bench comprising Justices Sanjay Karol and Prasanna B Varale observed that there cannot be multiple heads under which damages or interest are awarded beyond what is contractually agreed between the homebuyer and the developer. The Court, referring to earlier judgments, emphasized that unless there are exceptional reasons, a builder or authority such as Greater Mohali Development Aut...