Leasing Out Flat Does Not Exclude Homebuyer from Consumer Protection: Supreme Court

The Supreme Court held that merely leasing out a residential flat does not exclude a homebuyer from the definition of “consumer” under the Consumer Protection Act, 1986.

Setting aside an NCDRC order, the Court ruled that a buyer remains a consumer unless it is proved that the dominant purpose of purchasing the property was commercial profit-making.

It observed that the burden to establish a commercial purpose lies on the developer.

Finding no material to show a direct nexus between the purchase and profit-generating activity, the Court restored the consumer complaint and directed the NCDRC to decide it on merits.

[Vineet Bhari v. MGF Developers]