New Delhi: The supreme court has directed a Delhi- based real estate developer M/s Business Park Town Planners Ltd. to refund over Rs 43 lakhs to a plot purchaser, with the simple interest rate enhanced from 9% to 18% per annum.
Bench Overturns NCDRC Order
The order was delivered by a bench of Justices Dipankar Datta and Augustine George Masih, which turned down the earlier order of the national consumer disputes redressal commission (NCDRC) that had capped the interest at 9% p.a.
Developer’s Conduct Criticised
The apex court observed that the developer’s conduct — marked by prolonged delays, unfair penalties on the buyer, and over a decade-long wait — warranted higher compensation.
“Keeping in mind the overall conduct of the respondent (developer): the delay caused by it in offering the plot, the fact that the respondent charged the appellant delay compensation @18% p.a. on the due amount, and the long wait that the appellant had to endure over a period of a decade, causing harassment and anxiety, we find that refund of the principal amount with 9% interest, as awarded by the NCDRC, will not serve the ends of justice,” the court said.
Interest Rate Enhanced to 18%
Explaining the increase in the interest rate, the bench further stated, “In view of the conduct of the respondent, it cannot be permitted to escape with a nominal liability for its default while it charged interest @18% on default committed by the appellant (complainant)… equity and fairness demand that the respondent be put to the same rigours… We therefore increase the rate of interest from 9% to 18% per annum, keeping the other terms intact.”
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Case Background
The court directed the developer to refund the amount within two months. The case stemmed from a plot booked in 2006 by buyer Rajnesh Sharma for Rs 36,03,692. Despite paying a total of Rs 43,13,312.67, which is the over all consolidated amount including 18 percent simple interest for delayed payment, Sharma never received possession of the plot due to the developer’s delay.
