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Supreme Court of India 2026-02-04 allowed

Vinit Bahri and Anr vs M/s. MGF Developers Ltd. and Anr

Bench: 2 — Prashant Kumar Mishra, N.V. Anjaria

In Brief

Homebuyers who purchased a flat in 2005 with possession delayed until 2015 sued the developer for deficiency in service, unfair practices, and compensation. The developer claimed they were not "consumers" under the Consumer Protection Act because they later leased the property. The Supreme Court held that merely leasing property does not prove the purchase was for commercial purpose. The developer bore the burden to prove dominant commercial intent at purchase—a factual question requiring close nexus between purchase and profit-generating activity. The Court set aside the dismissal and restored the complaint for merit consideration, clarifying that homebuyers retain consumer protection unless commercial purpose is affirmatively proved.

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Consumer Protection Real Estate Definitions Burden of Proof Commercial Purpose

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