Q: Discuss the citation of Lucknow Development Authority vs M.K. Gupta on 5 November, 1993 ?

Ans: A person who applies for allotment of a building site or for a flat constructed by the development authority or enters into an agreement with a builder or a contractor is a potential user and nature of transaction is covered in the expression 'service of any description.'
A government or semi-government body or a local authority is as much amenable to the Consumer Act as any other private body rendering similar service. Truly speaking it would be a service to the society if such bodies instead of claiming exclusion subject themselves to the Act and let their acts and omissions be scrutinized, as public accountability is necessary for healthy growth of society.

The court thus held: "The provisions in the Acts, namely, Lucknow Development Act, Delhi Development Act or Bangalore Development Act clearly provide for preparing plan, development of land, and framing of scheme etc. Therefore if such authority undertakes to construct building or allot houses or building sites to citizens of the State either as amenity or as benefit then it amounts to rendering of service and will be covered in the expression ' service made available to potential users'. 'Housing activity" is a service and it was covered in the clause as it stood before 1993.

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