A person who buys residential flats in the name of companies in which he is the director cannot approach the consumer forum because the purchase is for a commercial purpose, the National Consumer Disputes Redressal Commission has stated while dismissing a batch of appeals against the builder. The Rajasthan consumer commission had ruled in favour of such buyers in the case, Ratnesh Industries vs Majestic Properties. The buyers had complained there was delay in the project, entitling them to get compensation for deficiency in service. The builder countered that the delay was due to non-payment of dues by buyers, who were property dealers who indulged in resale. In the appeal, the National Commission stated that even if the purchase was for providing residences for company executives, still it would be commercial purpose. Under the Consumer Protection Act, a person who buys goods or services for commercial purposes is barred from using the law. The state commission had maintained that the question whether the buyer bought the flats for commercial purpose could be decided only after he gets possession and indulges in such activity. The National Commission rejected that view, stating that the buyers in this case did not clarify that the flats were for residential purpose only.