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The Supreme Court directed Business Park Town Planners Ltd. to refund over INR 43 lakh to a plot buyer, increasing the interest rate from 9% to 18% in line with the interest the builder charged on delayed payments. The buyer, Rajnish Sharma, had booked a plot in 2006 and paid a significant upfront amount, but possession was delayed, and additional charges were demanded. The court emphasized fairness and accountability, highlighting that builders must face consequences for defaulting on contractual obligations.
The Supreme Court of India has directed Business Park Town Planners Ltd. to refund over INR 43 lakh to Rajnish Sharma, along with an 18% annual interest. This ruling overturned an earlier order by the National Consumer Disputes Redressal Commission (NCDRC), which had fixed the interest at 9%. Advertisement
Sharma had booked a plot in the company's "Park Land" project in 2006, paying INR 7.86 lakh upfront for a plot valued at INR 36.03 lakh. The agreement, signed in December 2007, required the builder to deliver possession within 24 months of service plan approval. By 2011, the plot had not been delivered. The builder allegedly proposed an alternative plot due to layout changes and asked for an additional INR 2.30 lakh. Despite repeated payments totaling INR 43.13 lakh by 2015, Sharma did not receive possession.
The builder had charged Sharma 18% annual interest on delayed payments. The Supreme Court noted that it would be unfair for the builder to escape accountability for its delay while imposing the same high interest on the buyer. The bench, comprising Justices Dipankar Datta and Augustine George Masih, emphasized that fairness demanded the builder face similar consequences for its default. Sharma had terminated the agreement in 2017 and moved the case to NCDRC in 2018. The NCDRC had directed the builder to refund the principal amount with 9% interest and litigation costs of INR 25,000 in January 2023.
The court stated that considering the long delay, harassment, and the builder's conduct, the case required a refund at an 18% interest rate to serve justice. The ruling highlights the importance of equity in real estate transactions and ensures that builders cannot impose harsh terms on buyers without facing consequences for their own defaults.
Source PTI
5th Jun, 2025
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