The reimbursement to the homebuyers must be with interests on par with the rates of mortgage loans: NCDRC

NEW DELHI: In order to ensure that all of the money invested by them, including interest paid, is recovered, the National Consumer Dispute Resolution Commission (NCDRC) has said that builders should reimburse the money for delayed projects with interest at the rate at which a nationalized bank likes. He gave a mortgage loan during the corresponding period.

The apex consumer commission has said that builders have to pay compensation and litigation costs to home buyers seeking a refund. In the absence of uniformity in the decisions taken by various consumer forums on the issue of the interest rate, a bank of S M Kantikar and Dinesh Singh said that linking it to the interest rate of the mortgage loan was appropriate and logical.

The commission approved the request in a lawsuit from 20 home buyers who had invested around 10 million rupees in the Wave Garden housing project in Mohali in 2012. The builder, Country Colonizers Pvt Ltd, had promised to deliver possession of apartments in a term of three years but Full construction in the last seven years.

As regards the reimbursement of the amount deposited by the plaintiff with the constructor, there can not be two opinions. The constructor must necessarily make the full refund to the claimant. With respect to interest on the amount deposited, it is always desirable and preferable, as far as possible and appropriate in the facts and specificities of a case, to identify and adopt some objective logical criteria to determine an appropriate interest rate. said the NCDRC.

The interest rate can not be arbitrary or capricious, some reasonable and acceptable reason must be demonstrated, subjectivity must be minimized. In our opinion, taking into account that the object unit in question is a residential housing unit, in a residential housing project, the interest rate for the loan for the construction of houses for the corresponding period in a programmed nationalized bank (see , State Bank of India). It would be appropriate and logical, and, if floating/variable/different interest rates were prescribed, the highest interest rate should be taken for this instantaneous calculation, he added.

He also ordered the builder to pay Rs 1 lakh as compensation and Rs 1 lakh as litigation cost to each homebuyer. The commission also imposed a fine of Rs 5 lakh on the company for engaging in unfair business practices and ordered it to deposit all the money within four weeks.

The NCDRC said that homebuyers were subjected to loss and injury, a continuous position of mental agony and physical harassment, difficulties and difficulties, uncertainty and helplessness even after paying a considerable amount and the builder has to reimburse the principal amount deposited by they with equal interests In addition to lumpsum compensation and the cost of litigation.