In Brief
Four residential building complexes in Ernakulam, Kerala were demolished for violating coastal zone regulations. Over 300 flat-owners, who had invested in and occupied these flats (2009-2019), sought compensation including interest on their principal investment. After interim compensation of Rs. 25 lakhs per owner was paid by the State, flat-owners claimed additional interest on their original purchase amounts, citing loss of home and inability to repurchase similar properties. The Supreme Court held flat-owners are not entitled to interest, as they had enjoyed 8-9 years of possession and retain ownership of appreciating underlying land. The deprivation of money was offset by actual use of the asset.
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