News: SC orders Nexgen Infracon to refund buyers' money with 9% interest-11-02-2021
The apex court also modified the direction restraining the builder from deducting the tax at source. The amount is to be refunded within one month from the date of order.
NEW DELHI: The Supreme Court of India has ordered Nexgen Infracon, part of Mahagun Group, to refund home buyers' moeny along with 9% interest per annum from the dates of respective deposits.
Nexgen Infracon had challenged the National Consumer Disputes Redressal Commission's (NCDRC) 2019 order where it directed the builder to refund the entire amount deposited by buyers along with compensation at 12% per annum from the respective dates of deposits till the date of realization, within a period of one month. Failing which the builder was liable to pay compensation @ 14% per annum.
This order was given after buyers submmitted that the builder has failed to complete the Mahagun Mezzaria project within the stipulated period.
Builder while challenging the order in SC submitted that the rate of interest awarded by NCDRC was at a higher scale, occupancy certificate in respect of the tower where the apartment was booked by the respondents was expected to be granted in the month of March, 2021 and they would hand over the possession of the apartment booked by the respondents soon thereafter.
Advocates Piyush Singh and Aditya Parolia of PSP Legal, appearing for the home buyers, however submitted that the respondents are not willing to take possession of the apartment as suggested and that they will be satisfied in taking refund of the amount deposited by them along with interest at such rate as this court may deem appropriate to grant.
SC held that the respondents were justified in seeking refund. The court however scale down the interest from 12% & 14% as ordered by NCDRC to 9% per annum. It also modified the direction restraining the builder from deducting the tax at source. The amount is to be refunded within one month from the date of order.
