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Consumer can’t complain against builder for sale of ready flat

Madhab Roy

was constructing a building on a plot owned by him. He entered into an agreement for sale of a flat to his brother-in-law Babul Sarkar for Rs 3,10,000. Babul had paid instalments in cash, totalling Rs 1,99,650.

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After Madhab’s death, Babul filed a complaint against the builder’s wife, Ratna Roy and sisters and babul’s wife Kalpana Sarkar. After the forum allowed the complaint, Ratna approached Kolkata State Commission but her appeal was rejected. She then filed a revision before National Commission.

The panel observed the agreement showed Madhab had constructed a 3-storied structure. After completion of construction, Babul wanted to purchase flat no. 1 on the second floor and Madhab had agreed to sell it.

The National Commission questioned the maintainability of the complaint. Babul claimed he had paid an advance of Rs.60,000, but the commission said his statement was contrary to the agreement.

The national panel also observed the element of service was absent when a building has already been constructed. So the buyer would not be a “consumer” and the transaction would not be covered under the Act. Accordingly, by its order of 24.11.2017 delivered by Justice V K Jain, the National Commission allowed Ratna’s revision and dismissed Babul’s complaint.

Conclusion: A plea cannot be taken which is contrary to documentary proof. Sale of a ready flat is neither goods nor services, but a transaction of immovable property, hence outside the purview of the Consumer Protection Act.

(The author is a consumer activist and has won the Govt. of India’s National Youth Award for Consumer Protection. His e-mail is jehangir.gai.columnist@outlook.in)

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