Complainant/respondent agreed to purchase a site in the layout formed by the petitioner and made initial payment of Rs.2,02,530/- on 3.10.2008.  Subsequently he paid Rs.2,50,000/- on 30.12.2008.  In all he paid Rs.4,52,530/- which was nearly half of the total cost of the site which was fixed at Rs.9,60,120/-.  In spite of payment of nearly 50% of the sital value by the respondent, petitioner failed to issue the allotment letter.  On a visit to the layout, respondent found that no development work/activity was going on.  He sent legal notice to the petitioner either to allot a site or refund the amount along with interest.  Petitioner took the stand that the respondent was a part and parcel of the society; that it was under the process of completing the said project and the respondent was asked to wait for his turn; that as soon as the layout is formed respondent would be allotted a site.

        District Forum partly allowed the complaint and directed the petitioner to refund the amount deposited by the respondent along with interest @ 18% from the respective date of deposit.  Rs.2,000/- were awarded by way of costs.

        Petitioner, being aggrieved, filed the appeal before the State Commission which has been dismissed.

        Notice limited to the point of interest was issued to the respondent.

        Counsel for the petitioner contends that interest @ 18% on the deposited amount is on the higher side.  Supreme Court of India in Ghaziabad Development Authority vs. Balbir Singh – (2004) 5 SCC 65 had awarded interest @ 18% but later on in Haryana Urban Development Authority vs. Darsh Kumar & Ors. – (2005) 9 SCC 449 Supreme Court held that interest @ 12% was sufficient.

        Counsel for the respondent states that the respondent has no objection to the reduction of the rate of interest from 18% to 12%.  Ordered accordingly.

        Revision petition is dismissed with the modification that the rate of interest is reduced from 18% to 12%.

        Registry is directed to release the sum of Rs.4,50,000/- deposited by the petitioner to the respondent in part satisfaction of the decree.