NCDRC on 10th July 2019 directed a builder to refund money to the home buyers for the delayed projects with the interest rates equivalent to the interest rate offered on a home loan by the nationalized banks.
The builders namely Country Colonizers Pvt. Ltd. had promised the completion of their residential project ‘Wave Garden’ within a span of 3 years but had failed to deliver the same from the last 7 years.
Justice Kantikar & Justice Singh held that under sections 2(1)(g) & (o) deficiency of services and under section 2(1)(r) unfair trade practices on the part of the builders, the Commission ordered that the rate of interest cannot be arbitrary or whimsical, some reasonable and acceptable rationale has to be evident.
Bearing in mind the subject unit in question is a residential dwelling unit, the rate of interest for house loan for the corresponding period in a scheduled nationalized bank would be logical.
