Auctioned prop not under Consumer Protection Act

A buyer of an auctioned property cannot take the benefit of the Consumer Protection Act complaining against deficiency in service, a Delhi State Consumer Commission has said.

Last Updated: Jun 30, 2010, 22:25 PM IST

New Delhi: A buyer of an auctioned property
cannot take the benefit of the Consumer Protection Act
complaining against deficiency in service, a Delhi State
Consumer Commission has said.

Citing an apex court judgement, the Commission said "with
reference to a public auction of existing sites, the purchaser
is not a consumer, the owner is not a trader or a service
provider and the grievance does not relate to any matter in
regard to which a complaint can be filed."

It said any grievance by the purchaser would not give
rise to a consumer dispute and the Fora would not have
jurisdiction to entertain any complaint by the purchaser or
lessee against the owner holding the auction of sites if it
suffered from any disadvantages.

It passed the order on Khalid Akhtar`s petition seeking
compensation from NDMC for delaying in providing electricity,
water and sanitation connection besides cancelling licence to
run an allotted shop.

He had contended that delay in providing basic amenities
and non-issuance of health certificate to run the shop
amounted to deficiency in service.

"We hold that Akhtar is not a consumer because the
shop in question was allotted to him in auction, being the
highest bidder," it said.

He was allotted a shop at Dharam Marg here after
fulfilling all the formalities but the NDMC had denied him
licence and later cancelled the allotment despite several
requests for reconsideration, after which he had approached
the Commission for relief.

-PTI