Multiple properties or flat rentals, homebuyers still a consumer, says SC

IN a recent landmark verdict, the Supreme Court—clarifying the scope of ‘consumer and commercial purpose’ under the Consumer Protection Act—has held that the mere ownership of multiple residential properties, or the act of renting out a flat, does not alter the status of a homebuyer as a ‘consumer’, under the Consumer Protection Act.

- SUCHITRA KALYAN MOHANTY

The top court clarified that a homebuyer cannot be excluded from the definition of ‘consumer’ unless it is clearly established that the dominant purpose of the transaction was commercial in nature, namely, engagement in the business of real estate for profit. Mere leasing of a residential unit, or ownership of more than one property, does not by itself constitute a commercial purpose.