u/shrayansh-law

A friend and client sued NoBroker in Consumer Commission over a failed property transaction - and WON.

Here’s how it all began…

This friend (later became my client) wanted to buy an apartment in Bengaluru. I’m gonna refer her as Buyer here.

Seller is settled in the USA.

Buyer hired NoBroker’s “Property Legal Services” package for around ₹35K so the transaction could be handled smoothly.

Instead, NoBroker’s own Relationship Manager (N-RM) ended up frustrating the seller so much that he cancelled the deal entirely.

Why?

Because despite repeatedly being told:
• To communicate over email, or
• To fix a time before calling

…the N-RM kept randomly calling the Seller at unannounced hours expecting instant responses.

Anyone dealing with NRI property transactions knows this is the fastest way to irritate a Seller.

After the deal collapsed, the Seller agreed to refund the token amount directly to the Buyer.

She shared bank details.

But then NoBroker stepped in and asked the Seller to transfer the money into NoBroker’s own bank account through a payment link sent over email.

Buyer had never authorized NoBroker to accept or demand payments on her behalf.

Naturally, both the Buyer and the Seller got suspicious.

But since the deal fell through for no fault of my Buyer or the Seller, the Buyer asked NoBroker to refund the price of the package purchased by her since the deal itself collapsed due to NoBroker’s conduct.

Initially:
“Yes ma’am, refund possible.”

Then:
“₹17K already paid to advocate for due diligence.”

Then Finally:
“No refund at all. Services already rendered.”

Mind you, my friend was in her last trimester when all this happened.

So, we filed a case before the District Consumer Commission, Bengaluru.

The Commission basically asked NoBroker:

- If ₹17K went to due diligence… what happened to the remaining amount?

- What other services did you actually perform?

- … And if there was no deficiency, why did you earlier offer refund?

Any lawyer who has practised before DCDRC 1st Additional Bench will know that the Bench is strict in its questions.

It will be sufficient to say… the Bench wasn’t pleased with NoBroker harassing a pregnant lady in her third trimester, making her run after them for a refund they promised.

Ultimately, DCDRC ruled in favour of my client and ordered -

refund with interest + compensation + litigation costs
—————————

A lot of people assume these large prop-tech companies can’t realistically be challenged.

That’s not true.

If you properly recorded the emails, WhatsApp chats, payments, etc. Courts and Consumer Commissions can be extremely effective.

PS: we were able to wrap this case up in less than 10 months.

For the curious minds, you can read the judgment by visiting the website e-jagriti.gov.in, click on judgment and type the Case Number - DC/AB3/525/CC/416/2025

Stay vigilant, Stay Protected!

A friend and client sued NoBroker in Consumer Commission over a failed property transaction - and WON.

Here’s how it all began…

This friend (later became my client) wanted to buy an apartment in Bengaluru. I’m gonna refer her as Buyer here.

Seller is settled in the USA.

Buyer hired NoBroker’s “Property Legal Services” package for around ₹35K so the transaction could be handled smoothly.

Instead, NoBroker’s own Relationship Manager (N-RM) ended up frustrating the seller so much that he cancelled the deal entirely.

Why?

Because despite repeatedly being told:
• To communicate over email, or
• To fix a time before calling

…the N-RM kept randomly calling the Seller at unannounced hours expecting instant responses.

Anyone dealing with NRI property transactions knows this is the fastest way to irritate a Seller.

After the deal collapsed, the Seller agreed to refund the token amount directly to the Buyer.

She shared bank details.

But then NoBroker stepped in and asked the Seller to transfer the money into NoBroker’s own bank account through a payment link sent over email.

Buyer had never authorized NoBroker to accept or demand payments on her behalf.

Naturally, both the Buyer and the Seller got suspicious.

But since the deal fell through for no fault of my Buyer or the Seller, the Buyer asked NoBroker to refund the price of the package purchased by her since the deal itself collapsed due to NoBroker’s conduct.

Initially:
“Yes ma’am, refund possible.”

Then:
“₹17K already paid to advocate for due diligence.”

Then Finally:
“No refund at all. Services already rendered.”

Mind you, my friend was in her last trimester when all this happened.

So, we filed a case before the District Consumer Commission, Bengaluru.

The Commission basically asked NoBroker:

- If ₹17K went to due diligence… what happened to the remaining amount?

- What other services did you actually perform?

- … And if there was no deficiency, why did you earlier offer refund?

Any lawyer who has practised before DCDRC 1st Additional Bench will know that the Bench is strict in its questions.

It will be sufficient to say… the Bench wasn’t pleased with NoBroker harassing a pregnant lady in her third trimester, making her run after them for a refund they promised.

Ultimately, DCDRC ruled in favour of my client and ordered -

refund with interest + compensation + litigation costs
—————————

A lot of people assume these large prop-tech companies can’t realistically be challenged.

That’s not true.

If you properly recorded the emails, WhatsApp chats, payments, etc. Courts and Consumer Commissions can be extremely effective.

PS: we were able to wrap this case up in less than 10 months.

For the curious minds, you can read the judgment by visiting the website e-jagriti.gov.in, click on judgment and type the Case Number - DC/AB3/525/CC/416/2025

Stay vigilant, Stay Protected!

Update: the case number is DC/AB3/525/CC/241/2025. The old case number was CC/416/2025.

A friend and client sued NoBroker in Consumer Commission over a failed property transaction - and WON.

Here’s how it all began…

This friend (later became my client) wanted to buy an apartment in Bengaluru. I’m gonna refer her as Buyer here.

Seller is settled in the USA.

Buyer hired NoBroker’s “Property Legal Services” package for around ₹35K so the transaction could be handled smoothly.

Instead, NoBroker’s own Relationship Manager (N-RM) ended up frustrating the seller so much that he cancelled the deal entirely.

**Why?**

Because despite repeatedly being told:
• To communicate over email, or
• To fix a time before calling

…the N-RM kept randomly calling the Seller at unannounced hours expecting instant responses.

Anyone dealing with NRI property transactions knows this is the fastest way to irritate a Seller.

After the deal collapsed, the Seller agreed to refund the token amount directly to the Buyer.

She shared bank details.

But then NoBroker stepped in and asked the Seller to transfer the money into NoBroker’s own bank account through a payment link sent over email.

Buyer had never authorized NoBroker to accept or demand payments on her behalf.

Naturally, both the Buyer and the Seller got suspicious.

But since the deal fell through for no fault of my Buyer or the Seller, the Buyer asked NoBroker to refund the price of the package purchased by her since the deal itself collapsed due to NoBroker’s conduct.

Initially:
“Yes ma’am, refund possible.”

Then:
“₹17K already paid to advocate for due diligence.”

Then Finally:
“No refund at all. Services already rendered.”

Mind you, my friend was in her last trimester when all this happened.

So, we filed a case before the District Consumer Commission, Bengaluru.

The Commission basically asked NoBroker:
\- If ₹17K went to due diligence… what happened to the remaining amount?
\- What other services did you actually perform?
\- … And if there was no deficiency, why did you earlier offer refund?

Any lawyer who has practised before DCDRC 1st Additional Bench will know that the Bench is strict in its questions.

It will be sufficient to say… the Bench wasn’t pleased with NoBroker harassing a pregnant lady in her third trimester, making her run after them for a refund they promised.

Ultimately, DCDRC ruled in favour of my client and ordered -

refund with interest + compensation + litigation costs
—————————

A lot of people assume these large prop-tech companies can’t realistically be challenged.

That’s not true.

If you properly recorded the emails, WhatsApp chats, payments, etc. Courts and Consumer Commissions can be extremely effective.

PS: we were able to wrap this case up in less than 10 months.

For the curious minds, you can read the judgment by visiting the website **e-jagriti.gov.in**, click on judgment and type the Case Number - **DC/AB3/525/CC/416/2025**

Stay vigilant, Stay Protected!

I'm constantly surprised why founders don't make agreements. It feels like the most basic advice, everyone knows it but there is a psychological factor in it.

Most startups start from a colllege room so yeah, there's this uncomfortableness about making your friendship turn legal

And what's worse..even if they have agreement..they want to feel amicable to SIGN quickly and not ask any questions to not appear..hostile.

I recently read a post here on reddit itself where the whole drama could have been avoided by 2 uncomfortable conversations early on.

Think about it psychologically

1. The awkwardness of discussing contract is 24 hrs max. The pain you'll have if things go wrong and you lose friendship + finance, will last for months.

2. What would you say to a friend..who is filled to the brim with Optimism and says "hey i have this friend and we're starting a business. Nope i dont think we need anything legal. We're good friends"

As a third person watching this, you'll think "ARE YOU INSANE"

So, have those uncomfortable conversations.

A few things that DEFINITELY need to be discussed properly:

\- Equity split

\- Vesting (extremely important and ignored way too often)

\- What happens if one founder leaves early

\- Decision-making power

\- Salary withdrawals

\- IP ownership

\- Who actually works full-time vs “helping”

\- Whether either founder can start another business simultaneously

One thing founders also miss: Your cofounder agreement should NOT just cover “bad behavior.”

It should also cover normal life events like burnout, marriage relocation, higher studies, family pressure, health issues, job offers, loss of interest etc.

When we start we think.. The only ways we breakup is something dramatic.

But.. most of the time it's just that people stop being on the same page or life happens.

So, have those conversations and have a contract

Cheers

Shrayansh

I'm constantly surprised why founders don't make agreements. It feels like the most basic advice, everyone knows it but there is a psychological factor in it.

Most startups start from a colllege room so yeah, there's this uncomfortableness about making your friendship turn legal

And what's worse..even if they have agreement..they want to feel amicable to SIGN quickly and not ask any questions to not appear..hostile.

I recently read a post here on reddit itself where the whole drama could have been avoided by 2 uncomfortable conversations early on.

Think about it psychologically

1. The awkwardness of discussing contract is 24 hrs max. The pain you'll have if things go wrong and you lose friendship + finance, will last for months.

2. What would you say to a friend..who is filled to the brim with Optimism and says "hey i have this friend and we're starting a business. Nope i dont think we need anything legal. We're good friends"

As a third person watching this, you'll think "ARE YOU INSANE"

So, have those uncomfortable conversations.

A few things that DEFINITELY need to be discussed properly:

\- Equity split

\- Vesting (extremely important and ignored way too often)

\- What happens if one founder leaves early

\- Decision-making power

\- Salary withdrawals

\- IP ownership

\- Who actually works full-time vs “helping”

\- Whether either founder can start another business simultaneously

One thing founders also miss: Your cofounder agreement should NOT just cover “bad behavior.”

It should also cover normal life events like burnout, marriage relocation, higher studies, family pressure, health issues, job offers, loss of interest etc.

When we start we think.. The only ways we breakup is something dramatic.

But.. most of the time it's just that people stop being on the same page or life happens.

So, have those conversations and have a contract

Cheers

Shrayansh

If you're hiring a freelance developer for your startup, PLEASE understand this:

By default, the developer usually owns the IP/code they create unless the contract explicitly transfers it to your company.

A lot of founders assume:
“I paid for it, so I own it.”

That is not true.

Here are a few things your freelance dev contract should ideally have:

• IP assignment clause
Clearly states all code, designs, documentation, APIs, assets, etc. created during the engagement belong to the company.

• Confidentiality / NDA
Especially important if they get access to customer data, infra, internal docs, product roadmap, prompts, datasets, etc.

• Scope of work
What exactly are they building? Timelines? Deliverables? Ownership of unfinished work?

• Payment terms
Milestones, delays, refunds, late fees, acceptance criteria.

• Open-source usage clause
Very underrated. Some licenses can create compliance or commercial issues later.

• Third-party code declaration
They should disclose if they're reusing old code, templates, libraries, AI-generated code, or contractor-owned frameworks.

• Warranty clause
Basic confirmation that the work doesn’t knowingly infringe someone else’s IP.

• Access & security expectations
Who owns repos, cloud accounts, credentials, domains, deployment access, etc.

• Exit/termination clause
What happens if either side stops midway? Handover timelines matter.

• Non-solicit / non-compete (where enforceable)
Especially if they’ll interact with clients or internal team.

• Jurisdiction & dispute resolution
Which state/country laws apply if things go wrong?

Also:
DO NOT let critical infra/repos stay under the freelancer’s personal accounts.

Your GitHub org, cloud billing, domains, analytics, emails, deployment pipelines etc. should ideally remain under founder/company control from day 1.

Some tools founders use:

• Deel
• Remote
• DocuSign

I’d still suggest asking a lawyer to draft/review this properly. I understand ChatGPT is quick and useful for understanding clauses or redlining agreements, but if there’s an actual dispute later, a casually generated contract may not hold up well in court.

10 mins now, is worth the hassle later, which could cost lakhs and years in court.

I'm trying to help founders avoid mistakes that turn into costly legal mistakes later.

If there's any other questions you want answered, or topics you'd like to be covered, you can comment here.

Cheers,
Shrayansh

(This post is for general legal information only and does not constitute legal advice.)

If you're hiring a freelance developer for your startup, PLEASE understand this:

By default, the developer usually owns the IP/code they create unless the contract explicitly transfers it to your company.

A lot of founders assume:
“I paid for it, so I own it.”

That is not true.

Here are a few things your freelance dev contract should ideally have:

• IP assignment clause
Clearly states all code, designs, documentation, APIs, assets, etc. created during the engagement belong to the company.

• Confidentiality / NDA
Especially important if they get access to customer data, infra, internal docs, product roadmap, prompts, datasets, etc.

• Scope of work
What exactly are they building? Timelines? Deliverables? Ownership of unfinished work?

• Payment terms
Milestones, delays, refunds, late fees, acceptance criteria.

• Open-source usage clause
Very underrated. Some licenses can create compliance or commercial issues later.

• Third-party code declaration
They should disclose if they're reusing old code, templates, libraries, AI-generated code, or contractor-owned frameworks.

• Warranty clause
Basic confirmation that the work doesn’t knowingly infringe someone else’s IP.

• Access & security expectations
Who owns repos, cloud accounts, credentials, domains, deployment access, etc.

• Exit/termination clause
What happens if either side stops midway? Handover timelines matter.

• Non-solicit / non-compete (where enforceable)
Especially if they’ll interact with clients or internal team.

• Jurisdiction & dispute resolution
Which state/country laws apply if things go wrong?

Also:
DO NOT let critical infra/repos stay under the freelancer’s personal accounts.

Your GitHub org, cloud billing, domains, analytics, emails, deployment pipelines etc. should ideally remain under founder/company control from day 1.

Some tools founders use:

• Deel
• Remote
• DocuSign

I’d still suggest asking a lawyer to draft/review this properly. I understand ChatGPT is quick and useful for understanding clauses or redlining agreements, but if there’s an actual dispute later, a casually generated contract may not hold up well in court.

10 mins now, is worth the hassle later, which could cost lakhs and years in court.

I'm trying to help founders avoid mistakes that turn into costly legal mistakes later.

If there's any other questions you want answered, or topics you'd like to be covered, you can comment here.

Cheers,
Shrayansh

(This post is for general legal information only and does not constitute legal advice.)

If you're hiring a freelance developer for your startup, PLEASE understand this:

By default, the developer usually owns the IP/code they create unless the contract explicitly transfers it to your company.

A lot of founders assume:
“I paid for it, so I own it.”

That is not true.

Here are a few things your freelance dev contract should ideally have:

• IP assignment clause
Clearly states all code, designs, documentation, APIs, assets, etc. created during the engagement belong to the company.

• Confidentiality / NDA
Especially important if they get access to customer data, infra, internal docs, product roadmap, prompts, datasets, etc.

• Scope of work
What exactly are they building? Timelines? Deliverables? Ownership of unfinished work?

• Payment terms
Milestones, delays, refunds, late fees, acceptance criteria.

• Open-source usage clause
Very underrated. Some licenses can create compliance or commercial issues later.

• Third-party code declaration
They should disclose if they're reusing old code, templates, libraries, AI-generated code, or contractor-owned frameworks.

• Warranty clause
Basic confirmation that the work doesn’t knowingly infringe someone else’s IP.

• Access & security expectations
Who owns repos, cloud accounts, credentials, domains, deployment access, etc.

• Exit/termination clause
What happens if either side stops midway? Handover timelines matter.

• Non-solicit / non-compete (where enforceable)
Especially if they’ll interact with clients or internal team.

• Jurisdiction & dispute resolution
Which state/country laws apply if things go wrong?

Also:
DO NOT let critical infra/repos stay under the freelancer’s personal accounts.

Your GitHub org, cloud billing, domains, analytics, emails, deployment pipelines etc. should ideally remain under founder/company control from day 1.

Some tools founders use:

• Deel
• Remote
• DocuSign

I’d still suggest asking a lawyer to draft/review this properly. I understand ChatGPT is quick and useful for understanding clauses or redlining agreements, but if there’s an actual dispute later, a casually generated contract may not hold up well in court.

10 mins now, is worth the hassle later, which could cost lakhs and years in court.

I'm trying to help founders avoid mistakes that turn into costly legal mistakes later.

If there's any other questions you want answered, or topics you'd like to be covered, you can comment here.

Cheers,
Shrayansh

(This post is for general legal information only and does not constitute legal advice.)