Accepting flat keys doesn't bar interest claims: High Court ruling

In a significant judgment for real estate buyers, a High Court has held that accepting possession of a delayed flat does not extinguish a buyer's right to claim interest for the period of default. The court rejected the argument that a 'zero period'—a grace period often inserted by developers—could nullify previous delays in handing over properties.

The ruling addresses a common practice in the real estate sector where developers impose conditions suggesting that accepting keys amounts to waiving all claims for interest accrual. The High Court clarified that such conditions do not override statutory protections afforded to buyers under consumer protection laws and real estate regulations.

The judgment reinforces the principle that buyers cannot be deemed to have forfeited their rights merely by taking possession of their properties. Instead, the court emphasized that the timeline of delay remains relevant for calculating compensation, regardless of when keys are finally handed over.

Industry analysts expect the ruling to impact ongoing disputes between developers and homebuyers across multiple jurisdictions. Consumer advocacy groups have welcomed the decision as a check on developer practices that often attempt to circumvent liability through contractual clauses. Legal experts note the judgment provides clarity on the enforceability of possession-related claims in real estate transactions.