+
Model builder-buyer agreement crucial for realty sector in India: SC
Real Estate

Model builder-buyer agreement crucial for realty sector in India: SC

The Supreme Court has announced that a model builder-buyer agreement is important for the real estate sector in India for consumer protection because many developers try to put various clauses in it which people are not aware of.

Court Justices D Y Chandrachud and B V Nagarathna issued a notice to the central government on the plea and sought its response.

The bench of Justices told the media that consumer protection is important because builders put numerous clauses in the agreement, and the people are not aware of it. The realty agreement should have uniformity, so the model builders buyers agreement is vital in the country.

Supreme Court Advocate Ashwini Upadhyay told the media that the model agreement should be prepared by the centre, as some states have it and some do not, there is no uniformity in those agreements.

Senior Advocate Vikas Singh said that the states which already have a model agreement, builders try to influence the conditions to be incorporated, so the centre should implement the model agreement in all the states and Union Territories.

Senior Advocate Maneka Guruswamy said that the centre should seek the implementation of the model agreement to safeguard consumer interest.

The Public Interest Litigation (PIL) filed by Upadhyay has sought the centre to frame the model agreement for builders and buyers to protect consumer interest and bring transparency in the real estate sector in line with the Real Estate Regulatory Authority (RERA) Act 2016.

It was filed in October 2020 to seek implementation of the model builder buyer agreement and the model agent buyer agreement in all the states and to avoid harm to the consumer.

According to the plea, builders issue revised delivery schedules regularly and arbitrary unfair restrictive trade practices. It amounts to criminal breach of trust, criminal conspiracy, fraud, cheating, dishonesty, dishonest misappropriation of property and violation of corporate laws.

The plea has also sought regulations to compensate the buyers for losses because of delays from the promoters-builders and to recover the incurred amount.

Image Source


 Also read: SEBI tweaks laws for REIT, InvIT on exit for dissenting unitholders

The Supreme Court has announced that a model builder-buyer agreement is important for the real estate sector in India for consumer protection because many developers try to put various clauses in it which people are not aware of. Court Justices D Y Chandrachud and B V Nagarathna issued a notice to the central government on the plea and sought its response. The bench of Justices told the media that consumer protection is important because builders put numerous clauses in the agreement, and the people are not aware of it. The realty agreement should have uniformity, so the model builders buyers agreement is vital in the country. Supreme Court Advocate Ashwini Upadhyay told the media that the model agreement should be prepared by the centre, as some states have it and some do not, there is no uniformity in those agreements. Senior Advocate Vikas Singh said that the states which already have a model agreement, builders try to influence the conditions to be incorporated, so the centre should implement the model agreement in all the states and Union Territories. Senior Advocate Maneka Guruswamy said that the centre should seek the implementation of the model agreement to safeguard consumer interest. The Public Interest Litigation (PIL) filed by Upadhyay has sought the centre to frame the model agreement for builders and buyers to protect consumer interest and bring transparency in the real estate sector in line with the Real Estate Regulatory Authority (RERA) Act 2016. It was filed in October 2020 to seek implementation of the model builder buyer agreement and the model agent buyer agreement in all the states and to avoid harm to the consumer. According to the plea, builders issue revised delivery schedules regularly and arbitrary unfair restrictive trade practices. It amounts to criminal breach of trust, criminal conspiracy, fraud, cheating, dishonesty, dishonest misappropriation of property and violation of corporate laws. The plea has also sought regulations to compensate the buyers for losses because of delays from the promoters-builders and to recover the incurred amount. Image Source Also read: SEBI tweaks laws for REIT, InvIT on exit for dissenting unitholders

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?