Supreme Court Orders Real Estate Firm to Pay Hefty Refund with Interest

The Supreme Court has mandated a real estate firm to refund over Rs 43 lakh to a buyer, with 18% interest, following a decade-long dispute over plot possession. This decision enhanced the compensation initially set by the NCDRC at 9%, emphasizing fairness due to significant delays and charges imposed by the firm.

On Wednesday, the Supreme Court instructed a real estate entity to reimburse Rs 43 lakh to a plot purchaser, supplemented with an interest rate of 18%. This directive amends the compensation originally pronounced by the National Consumer Disputes Redressal Commission (NCDRC), which had set a 9% interest on the sum.

In partially allowing Rajnish Sharma's appeal against Business Park Town Planners Ltd, the bench, led by Justices Dipankar Datta and Augustine George Masih, highlighted the prolonged delay and unfair practices faced by Sharma since his plot booking in 2006. The court underscored that simply adhering to the 9% interest rate, as decided by the NCDRC, would not suffice in delivering justice.

The firm had imposed an 18% interest on Sharma for any delays, prompting the court to hold the company to a similar standard. As per an agreement signed in December 2007, the firm was supposed to deliver possession within 24 months but failed. Despite substantial payments made by Sharma, totaling Rs 43.13 lakh by 2015, the possession was undelivered. The Supreme Court's decision aims to rectify this imbalance in rights and obligations.

(With inputs from agencies.)