• Refund for real estate related matters

I am currently fighting a case against my builder in National Commission. I have asked for full refund of the flat I purchased with interest, penalty and compensation due to their unfair trade practice while selling the flat
1. What is the rate of interest rate on the invested amount can the complainant expect?
2. Does builder have any option to take NCDRC verdict lightly? What is the penalty if they don't abide by the order
Your response will be appreciated.
Asked 7 months ago in Property Law
Religion: Hindu

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10 Answers

National Consumer Disputes Redressal Commission (NCDRC) has said builders should refund money to home buyers for the delayed projects with interest at the rate at which a nationalised bank like State Bank of India (SBI) gave home loan during the corresponding year.

2) builder can file appeal against order beforeSC 

Ajay Sethi
Advocate, Mumbai
82713 Answers
5254 Consultations

5.0 on 5.0


  1. The amount of interest would be the discretion of the Commission. However as per common practice you can expect 10% of the amount due from the time of demand till realisation.
  2. No, the builder is bound by the order of the NCDRC. There is no penalty involved. The longer they fail to comply, the interest liability will keep growing.
  3. You can move an execution petition and attach the builder's assets for recovery of amount if he fails to comply by the Forum's order.


S J Mathew
Advocate, Mumbai
3293 Answers
147 Consultations

5.0 on 5.0

Dear Rajiv,

NCDRC was a good option before covid and advent of RERA. Though NCDRC cannot be taken lightly by anyone as it has wide powers and you can expect good compensation of about 8-9% of interest on the amount deposited by you. however after advent of RERA, this authority has taken the centre stage because it is fast and have produced good result. it is also the fact that the powerful builders are able to manage the authority but they cannot delay much by such management. The NCDRC is not working on old cased at present and it may take a lot of time in delivering the judgement and this could be harmful to your case. I would suggest you to go to RERA also for simultaneous proceedings against the builder as it may get you the order in few months and soon you may get your refund. earlier it was difficult to file in consumer and in RERA simultaneously but after a supreme court judgement it has become easy and it is in favor of the customers. I will strongly suggest you to go for RERA, moreover RERA will give better interest rate. Let the NCDRC take its time and you need not to withdraw your NCDRC case. Revert if you have any other query on it. Good wishes.


Advocate, New Delhi
372 Answers

4.9 on 5.0

You may also consider filing a case before RERA under the RERA Act  as Section 79 of the RERA Act does not bar a simultaneous case pending before a Commission or forum under the provisions of the Consumer Protection Act to entertain any complaint.


In a recent judgment, The NCDRC had ordered the following penalties:

Rs 3 per sq ft per month, in addition, interest at the rate of 6% on the amounts deposited by the flat purchasers before the due date of possession till the date on which offers of possession were made. There were orders where more ROI was ordered and it depends on the facts and judgment of the Honorable court. However, it is mostly higher than the prevailing banking rate of interest.


NCDRC cases come under Consumer Protection Act and it doesn't provide any leeway for builders and thus the verdict has to be strictly respected. The builder can move before the Civil appellate jurisdiction of Supreme Court if they are not satisfied with the order. The amount will compound till non-payment based on the interest or ordered rate of payment paid.



Aniruddha Chakraborty
Advocate, Bangalore
37 Answers

5.0 on 5.0


2. Interest will keep building up, in case the builder doesn't abides with the verdict. He also has the option of challenging the NCDRC verdict before the Supreme Court. 

Vibhanshu Srivastava
Advocate, New Delhi
9300 Answers
193 Consultations

5.0 on 5.0

1. Generally court awarded the interest @ 6% p.a i.e. banking rate , even you will claim more than this

2. No , builder cannot refuse to comply the verdict of the NCDRC , otherwise court will issue attachment order against his property , and even arrest warrant.  

Mohammed Shahzad
Advocate, Delhi
7091 Answers
74 Consultations

5.0 on 5.0

1. The interest can be between 6 and 12% in all such cases depending on the discretion of the honorable forum.

2. Whoever fails to comply with any order made by either of the 3 forums, shall be punishable with imprisonment for a term which shall not be less than one month, but which may extend to three years, or with fine, which shall not be less than twenty-five thousand rupees, but which may extend to one lakh rupees, or with fine, which shall not be less than twenty-five thousand rupees, but which may extend to one lakh rupees, or with both.

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the three forums shall have the power of a Judicial Magistrate of First Class for the trial of offences under sub-section (1) above, and on conferment of such powers, the said three forums, shall be deemed to be a Judicial Magistrate of First Class for the purposes of the Code of Criminal Procedure, 1973.

T Kalaiselvan
Advocate, Vellore
72799 Answers
1111 Consultations

5.0 on 5.0

1. Bank rate of interest.


2. Execution petition shall have to be filed seeking arrest of the builder and/or attachment of bank account or properties/assets of the Builder.

Krishna Kishore Ganguly
Advocate, Kolkata
25607 Answers
726 Consultations

5.0 on 5.0

Dear Sir,

In many cases, to be frank, such orders have become only paper orders if the builder is not co-operating. Executing such decree/order is very difficult. You may get bank interest and equivalent penalty and it is at the discretion of NCDRC.


Kishan Dutt Kalaskar
Advocate, Bangalore
5897 Answers
297 Consultations

4.8 on 5.0

1. Rate of Interest is to be determined by the court. Even if you pray that a ROI of 18% be granted in your favour some courts may order the same in your favour and some courts may reject the contention totally. 

2. The Developer may not take the operative part of the order into very serious implications and the same can be a very good ground for you to appeal. Penalty will depend once he disobeys the order. 

Garima Anil Mehrotra
Advocate, Mumbai
512 Answers
1 Consultation

4.9 on 5.0

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