Supreme Court Doubles Interest on Refund to Homebuyer After 12-Year Delay by Builder

The Supreme Court has ordered a builder to refund the plot purchaser’s paid amount with double the originally awarded interest, after a 12-year delay in handing over the property. 

A Bench modified the National Consumer Disputes Redressal Commission’s (NCDRC) earlier order, which had granted a 9% interest rate, and directed instead 18% simple interest on the principal sum. 

The Court held that equity demanded parity: since the builder had charged delay compensation at 18%, the refund must reflect the same rate to prevent perpetuation of an unfair bargain.

[Rajnesh Sharma v. M/s Business Park Town Planners Ltd]