#real estate fraud

The National Consumer Disputes Redressal Commission has held that a builder’s concealment of land acquired by the Zila Parishad in 1978 for a percolation lake constitutes unfair trade practice under the Consumer Protection Act. The ruling mandates full refund of all amounts paid by 113 buyers, plus 9% interest, setting a critical precedent for transparency in real estate sales involving public land.

The Maharashtra State Consumer Commission held that accepting full payment without delivering the flat, coupled with issuing dishonoured cheques, constitutes both deficiency in service and unfair trade practice under the Consumer Protection Act, 2019. This ruling reinforces that residential buyers acting in good faith are protected consumers - not investors - and builders cannot evade liability through financial misrepresentation.