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

11 Oct 2021 CW Team

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.

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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

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