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ARTICLE · 04 SEPTEMBER 2024

Landmark Judgment Reinforces Consumer Rights In Corporate Transactions

Mansukhlal Hiralal & Company
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The Supreme Court's recent ruling in Omkar Realtors and Developers Pvt. Ltd. vs. Kushalraj Land Developers Pvt. Ltd. & Anr. represents a significant development in consumer protection within the real estate sector.

IndiaConsumer Protection
Purvi Asher
Purvi Asher
Sayali Puri
Sayali Puri
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The Supreme Court's recent ruling in Omkar Realtors and Developers Pvt. Ltd. vs. Kushalraj Land Developers Pvt. Ltd. & Anr. represents a significant development in consumer protection within the real estate sector. This case centres on the interpretation of "consumer" under the Consumer Protection Act, 2019, and sets important precedents for fair trade practices in real estate transactions.

Background of the Case

The dispute arose when Kushalraj Land Developers Pvt. Ltd. (KLDP) booked a flat in the "Omkar 1973 Worli" project developed by Omkar Realtors and Developers Pvt. Ltd. (ORDP). KLDP made an initial payment of ₹51 lakhs, followed by further payments amounting to approximately ₹6.8 crores. An allotment letter issued on 29 June 2016, promised possession by 31 December 2018. However, ORDP advanced the possession date unexpectedly and demanded the remaining balance of ₹28.88 crores within 30 days. KLDP discovered that the flat was already allotted to

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