Case Law Analysis
|Delhi High Court
Consumer Protection Act, 1986 | Forfeiture Exceeding 10% of Sale Consideration in Plot Allotment Is Unreasonable & Violates Deficiency in Service : Delhi State Consumer Commission
The Delhi State Consumer Commission ruled that failure to deliver plot possession constitutes a continuous deficiency in service under the Consumer Protection Act, and any forfeiture of earnest money beyond 10% of the sale consideration is unconscionable and unenforceable. This sets a critical precedent for homebuyers facing unjust penalties from developers who delay or deny possession, reinforcing buyer protections in real estate transactions.