Return of Money order can be made only at the interest rate prescribed in the RERA Act and Rules at MCLR+1%
The U.P. Real Estate Appellate Tribunal clarified that interest on refund under the RERA framework must align with the statutory rate prescribed in the Act and Rules, i.e., MCLR + 1%, and not arbitrary contractual rates such as 24%. Emphasising the consumer-protective scheme of the Act, the Tribunal held that interest under Section 18 is compensatory in nature and must balance equities between promoter and allottee, ensuring fairness while rejecting one-sided contractual stipulations.