SC directs ‘Newtech developers’ refund amount to respective home buyers, for failure to hand over possession

Newtech Promoters and Developers Pvt. Ltd. Vs State of U.P (Supreme Court) The submission of the appellants/promoters is that under Section 40(1) of the Act only the interest or penalty imposed by the authority can be recovered as arrears of land revenue and no recovery certificate for the principal amount as determined by the authority can be issued. If we examine the scheme of the Act, the power of authority to direct the refund of the principal amount is explicit in Section 18 and the interest that is payable is on the principal amount in other words, there is no interest in the absence of ...