Nitish Banka

    • Can you get refund with interest on the money invested in the builder project?

    Can you get refund with interest on the money invested in the builder project?

    The delay in builder projects in many projects have sparked a debate on getting refund with interest on the money already invested in the builder projects.

    In consumer forum one thing is to be proved is there was a delay in the implementation of the project.

    Once you have proved that there is a delay in the project you can claim refund with interest on the money already invested in the builder projects.

    Arguments on the side of builder

    Builder resist such claims by saying that there is no agreement between the consumer and builder for getting interest on the amount to be refunded.

    In absence of agreement the consumers are not entitled for any refund.

     

    Counter Arguments

    Hon’ble Supreme Court has in Alok Shanker Pandey Vs. Union of India &Ors., II (2007) CPJ 3 (SC) held that:-

    “It may be mentioned that there is misconception about interest. Interest is not a penalty or punishment at all, but it is the normal accretion on capital. For example if A had to pay B a certain amount, say 10 years ago, but he offers that amount to him today, then he has pocketed the interest on the principal amount. Had A paid that amount to B 10 years ago, B would have invested that amount somewhere and earned interest thereon, but instead of that A has kept that amount with himself and earned interest on it for this period. Hence equity demands that A should not only pay back the principal amount but also the interest thereon to B.”

    The same argument can be applied in the cases where one can seek possession of the property and claim interest on the amount already invested and the consumer was not able to enjoy the property.

    Refund already claimed.

    If the buyer has already claimed the refund amount.

    Then also he can claim the interest on the refund amount even if he has not made any protest

    Argument

    So far as the question of protest by the complainants while receiving the amount is concerned, any protest on their part would have denied them the benefit of receiving the amount of refund and the prudence at that time demanded that they should first accept the refund and later claim for interest.

    Same argument can go with the possession cases. Because at the time of taking possession also the possession can be denied on want of interest.

    Conclusion

    Therefore interest is your right and you claim interest on the money already invested even after money is refunded to you.