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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: May 13, 20242024-05-13T08:26:19+05:30 2024-05-13T08:26:19+05:30In: Consumer Protection

Discuss in detail the Consumer law Judgments related to ‘Housing’.

Discuss in detail the Consumer law Judgments related to ‘Housing’.

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    1. Himanshu Kulshreshtha Elite Author
      2024-05-13T08:26:45+05:30Added an answer on May 13, 2024 at 8:26 am

      Consumer law judgments related to housing play a crucial role in protecting the rights of homebuyers and tenants, ensuring fair treatment, and promoting accountability in the real estate sector. Here's a detailed overview of some landmark consumer law judgments related to housing:

      1. Lucknow Development Authority v. M.K. Gupta (1994):
      In this case, the Supreme Court of India held that a housing authority or developer cannot arbitrarily cancel the allotment of a plot or flat without providing a reasonable opportunity for the allottee to be heard. The judgment emphasized the principle of natural justice and the rights of allottees to due process before their allotments are cancelled.

      2. Lucknow Development Authority v. K.K. Gupta (1994):
      This case reaffirmed the principle laid down in the M.K. Gupta case and held that even if the allotment letter contains a clause allowing cancellation without notice, such a clause would be void as it violates the principles of natural justice. The court emphasized that allottees have the right to be heard before any adverse action is taken against them.

      3. National Buildings Construction Corporation Ltd. v. S.R. Vinitha and Others (2019):
      In this case, the National Consumer Disputes Redressal Commission (NCDRC) held that delayed possession of a residential flat constitutes a deficiency in service under the Consumer Protection Act. The NCDRC awarded compensation to the homebuyers for the delay in handing over possession and directed the builder to pay penalty interest for the delayed period.

      4. Pioneer Urban Land and Infrastructure Ltd. and Others v. Union of India (2019):
      In this landmark judgment, the Supreme Court of India upheld the constitutional validity of the Real Estate (Regulation and Development) Act, 2016 (RERA). The court affirmed that RERA is a beneficial legislation aimed at protecting the interests of homebuyers and promoting transparency and accountability in the real estate sector. The judgment empowered homebuyers to seek relief under RERA for grievances related to delayed possession, unfair practices, and deviations from approved plans.

      5. Imperia Structures Ltd. v. Anil Patni (2021):
      In this recent judgment, the NCDRC held that the failure of a builder to complete the construction and hand over possession of a residential flat within the stipulated time amounts to deficiency in service. The NCDRC directed the builder to refund the amount paid by the homebuyer along with interest and compensation for mental agony and harassment.

      These judgments underscore the importance of consumer protection laws in safeguarding the rights of homebuyers and tenants, holding developers and housing authorities accountable for their actions, and promoting transparency and fairness in the housing sector. They establish important precedents that guide the resolution of disputes related to housing and contribute to the development of consumer jurisprudence in India.

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