Rental Property Rules: Supreme Court Clarifies Consumer Rights for Flat Owners and Tenants
In India’s rapidly growing urban centers and Tier 1 cities, owning a house or flat is not just a dream—it’s also an investment. Many homeowners buy properties with the idea of earning monthly rental income. But in the process, certain legal questions arise: If you rent out your flat, do you still qualify as a “consumer” under Indian law? Can builders deny your consumer rights by claiming that your property purchase was for business purposes? Recently, the Supreme Court of India provided clarity on this important issue, delivering relief to millions of homebuyers across the country. The Context: Buying Property vs. Renting It Out Urban residents often invest in flats or apartments with dual goals: owning a home and earning rental income. However, some builders have argued that when a flat is rented out, the purchaser is no longer acting as a “consumer.” They claim that such purchases are intended for business purposes and, therefore, the buyer cannot avail the protections of the Consume...