Consumer Protection Act

Consumer Protection Act – Auction Allotment

The National Consumer Disputes Redressal Commission (NCDRC) generally holds that disputes related to auction allotments do not fall under the purview of the Consumer Protection Act. The primary rationale is that an auction purchaser is typically not considered a ‘consumer’ as defined by the Act. This is because the transaction in an auction is an outright sale of property, not the provision of ‘goods’ or ‘services’ for a consideration. The NCDRC has consistently ruled that an auction purchaser, who acquires a property on an “as is where is” basis, cannot later file a complaint for deficiencies in services or for a lack of amenities. Such disputes are considered to be contractual in nature and must be adjudicated in a civil court, not a consumer forum. However, if the dispute arises from a “deficiency in service” in connection with the immovable property, like a builder failing to provide promised amenities for a plot, the NCDRC has been known to take up the matter.

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