The Unwieldy Discretion Of Consumer Courts

In recent times, Consumer Courts have been grappling with the issue that in the event of failure to offer possession within the contractually stipulated period prescribed in the Agreement for Sale, will the real estate developer/promoter ("Promoter") be liable to compensate the home buyers such rate of interest provided in the compensation clause of the Agreement for Sale, or in accordance with the provisions of the applicable statue?

The Real Estate (Regulation and Development) Act, 2016 ("RERA") inter alia provides that if a Promoter is unable to give possession of an apartment, plot or building in accordance with the terms of the agreement for sale, the promoter is liable on demand (in case the allottee wishes to withdraw from the project), to return the amount received by such Promoter with interest at such rate as may be prescribed in this behalf, including compensation in the manner as provided under RERA¹. Each state notifies its own governing rules