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The Indian Express

⇱ Rs 27 lakh to 18% interest: Why NCDRC ordered a massive payout for Gurgaon flat buyers waiting since 2004


Consumer court news: Calling out a builder’s prolonged failure to deliver a promised flat despite full payment, the National Consumer Disputes Redressal Commission (NCDRC) has enhanced compensation to the homebuyers by ordering an 18 per cent interest refund, holding that lawful possession had become “impossible” due to regulatory and title-related hurdles.

A bench of Justice A P Sahi (president) and Bharatkumar Pandya (member) was hearing an appeal filed by the homebuyers against the Delhi State Commission’s 2015 order, which had granted a refund instead of possession of the flat.

“The rate of interest as awarded to the tune of 10 per cent by the State Commission on the peculiar facts of this case shall stand modified to 18 per cent, which we find to be justified in the circumstances of the present case where the person after investing a huge amount has been waiting since 2006 to get a valid possession,” the commission said on March 25.

The core issue before the commission was whether the complainants were entitled to actual possession of the property or whether a refund with appropriate interest was the proper relief in light of the builder’s failure to deliver the flat.