NEW DELHI: On Wednesday, the Supreme Court instructed a real estate firm to refund over Rs 43 lakh to a plot buyer, along with 18 percent interest.
The apex court increased the compensation rate ordered by the National Consumer Disputes Redressal Commission (NCDRC) which was set at 9 percent on the same amount payable by M/s Business Park Town Planners Ltd.
A bench consisting of Justices Dipankar Datta and Augustine George Masih partially granted the appeal made by Rajnish Sharma against the firm.
Sharma claimed delays, unfair charges, and harassment related to a plot booking made in 2006. Justice Datta noted, “Considering the respondent’s overall conduct, the delays in offering the plot, and the fact that the respondent charged the appellant 18% p.a. on the due amount, we find that the NCDRC’s ordered refund with 9% interest will not suffice for justice.”
The bench remarked that the firm could not simply evade responsibility while imposing an 18 percent charge for delays caused by the buyer. “While the rate of interest charged by the builder cannot uniformly apply to the buyer, the situation demands equity and fairness. The respondent should face consequences equivalent to the penalties imposed on the appellant for defaults,” they stated.
On March 10, 2006, Rajnish Sharma booked a plot in the “Park Land” project for Rs 36.03 lakh, paying Rs 7.86 lakh upfront. According to the December 2007 agreement, the firm was obliged to deliver possession within 24 months of plan approval, which included an 18 percent annual penalty for late payments.
By 2011, Sharma had paid nearly Rs 29 lakh but instead of delivering the original plot, the builder allegedly offered an alternative, demanding an additional Rs 2.30 lakh due to layout changes.
Despite multiple payments totaling Rs 43.13 lakh by 2015, possession was never granted. The builder then applied an 18 percent interest charge on alleged delays in Sharma’s payments.
After terminating the agreement in March 2017 and seeking a refund with damages, Sharma approached the NCDRC in 2018.
In January 2023, the apex consumer panel resolved the complaint, ordering the builder to refund the principal amount with 9 percent annual interest and litigation costs of Rs 25,000.
