Builders can't claim benefit under CP Act: Consumer Court

Builders constructing malls for commercial purposes cannot claim any benefit under the Consumer Protection Act, the Delhi State Consumer Commission has said.

The company, Saraf Projects Private Limited (SPPL), approached the Commission seeking directions to Shanti Construction Company (SCC) to pay compensation for mental trauma caused due to defective construction work.

The complainant entered into a contract with SCC in 2006 giving it the responsibility to carry out construction of the mall but when it was inspected by former's architect, he allegedly found numerous defects which led to termination of the contract between the two parties.

The Commission said that the complainant company could not take benefit of the Act as it was not a consumer as defined in the law.

"The complainant acquired commercial plot to carry out construction there to build (a) prestigious mall," the Commission headed by President Justice Barkat Ali Zaidi said, adding its case is not tenable under the Act.

It noted that consumer "does not include a person who obtains such goods for resale or for any commercial purpose."

SPPL is a private limited company and engaged in the business of construction, the consumer court noted, adding, it fell outside the ambit of the Act.