Interest On Deposited Amounts Should Be Restitutionary And Compensatory: NCDRC

The National Consumer Disputes Redressal Commission (NCDRC) ruled that interest on deposited amounts should be viewed as restitutionary or compensatory in nature. The case involved a dispute over delays in property possession, where the buyer sought interest on the amount deposited. NCDRC clarified that such interest is not a penalty but a compensatory measure for the loss of use of funds, reinforcing the principle that consumers are entitled to compensation for delays. This decision strengthens consumer rights by ensuring fair treatment in cases of delayed possession.