Deficiencies in services by colonizer

shiv mohan gulati (Querist) 09 October 2011 This query is : Resolved
Whether a Colonizer, who has earmarked a colony, assuring complete development of the area, as per license granted to him by Development Authority, can be prosecuted for not providing the amenities, in a consumer complaint. Whether, the purchaser of plot in the colony would come within the preveiew of consumer.

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R.Ramachandran (Expert) 09 October 2011
Dear Mr. Shiv Mohan,

According to the definition contained in the Consumer Protection Act,

(d) "consumer" means any person who-
(i) buys any goods for a consideration.. or
(ii) hires or avails of any services for a consideration

(g) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service;

(0) "service" means service of any description which is made available to potential (users and
includes the provision of facilities in connection with banking, financing insurance, transport,
processing, supply of electrical or other energy, board or lodging or both, housing
construction, entertainment, amusement or the purveying of news or other information...

From the facts revealed by you, you have purchased a plot for a consideration. The plot being an immovable property does not fall under the definition of 'goods'. Further you did not enter into any contract with the Colonizer for any services.

Therefore the purchaser of the plot is not a 'consumer' under the Consumer Protection Act.

Kiran Kumar (Expert) 09 October 2011
it is a clear cut case of deficiency in service on the part of coloniser.

if the license to cut a particular colony is given on certain conditions including providing amenities to the buyers....and such conditions form part of the agreement between the buyer and the coloniser then certainly the buyer has a right to ask for such amenities.

there are number of judgments which would say, the scope of CPA shall be enlarged to bring in as many cases as possible under its purview...we can not be hypertechnical while interpreting the law.

simultaneously the consumer may approach the concerned authorities as well for imposition of penalties upon the coloniser.

Anirudh (Expert) 09 October 2011
Sir, I am also facing similar problems.

Sir, will it be possible for you to give some citations so that I can make use of it. I shall be grateful.

shiv mohan gulati (Querist) 10 October 2011
Dear Mr. Kiran Kumar, thanks for providing valueable opinion. However, I would request you to please elaborate the same by giving some citations, so as to fortify the case.