Developers can't force one-sided agreements: SC
Real Estate

Developers can't force one-sided agreements: SC

The Supreme Court has observed that homebuyers cannot be compelled by real estate developers by one-sided contractual terms in the sale agreement. The apex court held that unreasonable clauses in the agreement indicate an unfair trade practice as per Consumer Protection Act (CPA).

The court also noted that there were several clauses in the agreement that reflected entirely one-sided terms of the apartment buyer's agreement, that are wholly loaded in favour of the developer, and against the allottee.

On the issue of whether provisions of RERA be given primacy over CPA, 1986, the court was of the opinion that in case there are two concurrent remedies available, and the aggrieved party chooses to exercise one, they lose the right to simultaneously exercise the other for the same cause of action.

The CPA 1986 was enacted to protect consumers' interests and provide a way for better protection of consumer interest, including the right to seek redressal against unfair trade practices or unscrupulous exploitation, the court said.

Image Source


4th Indian Cement Review Conference 2021

4th Indian Cement Review Conference 2021

17-18 March 

Click for event info

The Supreme Court has observed that homebuyers cannot be compelled by real estate developers by one-sided contractual terms in the sale agreement. The apex court held that unreasonable clauses in the agreement indicate an unfair trade practice as per Consumer Protection Act (CPA). The court also noted that there were several clauses in the agreement that reflected entirely one-sided terms of the apartment buyer's agreement, that are wholly loaded in favour of the developer, and against the allottee. On the issue of whether provisions of RERA be given primacy over CPA, 1986, the court was of the opinion that in case there are two concurrent remedies available, and the aggrieved party chooses to exercise one, they lose the right to simultaneously exercise the other for the same cause of action. The CPA 1986 was enacted to protect consumers' interests and provide a way for better protection of consumer interest, including the right to seek redressal against unfair trade practices or unscrupulous exploitation, the court said. Image Source4th Indian Cement Review Conference 20214th Indian Cement Review Conference 202117-18 March Click for event info

Next Story
Building Material

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Next Story
Building Material

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Next Story
Building Material

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App