The Supreme Court on Monday ruled that consumer courts can intervene in unfair builder-buyer agreements, calling them an “unfair trade practice” under the Consumer Protection Act, 2019. In a case involving the “Godrej Summit” project in Gurgaon, the court upheld a 10% deduction instead of 20% on cancellation, siding with homebuyers. It also stated that contracts heavily favoring developers will not be enforced. However, the court removed the 6% interest on the refund, citing that the buyers canceled due to market conditions, not builder fault.
