Now firms ‘buying’ flats can be treated as consumers

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By Accommodation Times Bureau

Goods purchased or services facilitated for “commercial purpose” are excluded from the persuasion of the Consumer Protection Act, the term is not defined clearly. Hence the confusion about its interpretation had been seen in a case of a firm, bought property for its own use, in Mumbai.

A partnership firm called Classique, having its office in Goa, had booked a flat in Royal Palms in Mumbai. The flat admeasuring 1244 sqft was to be sold for Rs 61 lakh. Possession was to be given within two years. The firm paid Rs 40, 09,414 in installments and another Rs 1, 51,000 toward allotment of parking. To downplay the confusion in such cases, the National Commission has clarified the legal position, in its landmark decision.

The firm paid Rs 40, 09,414 in installments and another Rs 1, 51,000 toward allotment of parking. But the builder failed to execute the agreement. The builder also did not obtain the occupancy certificate nor gave the possession. So the firm filed a complaint before the Maharashtra State Commission, seeking a direction to the builder to execute the agreement, hand over possession, and pay compensation for mental agony and loss of rent at Rs 20,000 per month.





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