Landowner in a development agreement is a consumer

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Allowing an appeal in Bunga Daniel Babu v M/S Sri Vasudeva Constructions & Ors, the Supreme Court held that a landowner who had entered into an agreement with a developer to build on his land in exchange for a certain amount of built-up space was a consumer as per the Consumer Protection Act, 1986, as a memorandum of understanding (MoU) entered into between the landowner and the developer for that purpose did not amount to a joint venture.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi.

The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.