Case Law Analysis
|Delhi High Court
Consumer Protection Act | Continuous Deficiency in Housing Service Constitutes Ongoing Wrong; 10% Earnest Money Forfeiture Cap Mandated : Delhi State Consumer Commission
Delhi State Consumer Commission rules that developers' failure to deliver possession is a continuing deficiency in service, extending limitation periods. The Commission also caps forfeiture of earnest money at 10% of the sale price, deeming higher deductions unreasonable under the Consumer Protection Act, 1986. This sets a precedent for homebuyers seeking relief against delayed projects and excessive penalties.