Rate of interest so determined by the legislature, is reasonable and if the said rule is followed to award the interest, it will ensure uniform practice in all the cases.

In most of the builder buyer’s agreements, the allottee is entitled to delayed possession charges/ interest only at the nominal rate ranging from Rs. 5/- to Rs.15/- per square feet per month for the period of such delay depending upon projects, whereas the promoter is entitled to exorbitant interest ranging from 18% to 24% per annum on account of delay in making payments by the allottees. Time and again, the Hon'ble Supreme Court and various High Courts as well as the NCDRC have declared these types of discriminatory terms and conditions of the builder buyer’s agreement not final and binding. The Act has provided a level playing field in this regard and has mandated that the rate of interest chargeable from the allottee by the promoter, in case of default, shall be equal to the rate of interest which the promoter shall be liable to pay the allottee, in case of default. The legislature in its wisdom in the subordinate legislation i.e., the rules, has determined the prescribed rate of interest as per rule 15 of the rules. So, the rate of interest so determined by the legislature, is reasonable and if the said rule is followed to award interest, it will ensure uniform practice in all the cases. To support this contention reference can be made from the Judgement of Pioneer Urban Land & Infrastructure Limited Vs. Govindan Raghavan, 2019(2) R.C.R. (Civil) 738. In the aforesaid judgment, the Hon’ble Apex Court finding the terms and conditions of the agreement to be one sided unfair and unreasonable has upheld the award of the National Commission awarding the interest as per Rule 15 of the Rules at the rate of 10.7% per annum and not on the contractual rate The rule 15 of the rules has determined the prescribed rate of interest and it provides that for the purpose of proviso to section 12; section 18; and sub- sections (4) and (7) of section 19, the “interest at the rate prescribed” shall be the State Bank of India highest marginal cost of lending rate +2%. Consequently, as per website of the State Bank of India i.e., https://sbi.co.in, the marginal cost of lending rate (in short, MCLR) as on date i.e., 12.08.2021 is 7.30%. Accordingly, the prescribed rate of interest will be marginal cost of lending rate +2% i.e., 9.30%.