SC says a uniform buyer-builder agreement is necessary

12 Jul 2024 CW Team

The Supreme Court observed on Monday that homebuyers in the country are being defrauded, necessitating the need for uniformity in builder-buyer agreements. The bench, comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra, noted that buyers are being defrauded by builders nationwide, which underscores the need for uniform agreements.

The observation was made while hearing a Public Interest Litigation (PIL) filed by lawyer Ashwini Upadhyay in 2021. The PIL argued that a model agreement was required to ensure transparency and fairness and to prevent builders and agents from engaging in unfair and restrictive trade practices.

Senior advocate Devashish Bharuka, assisting the bench as an amicus curiae, informed the bench that a final status report along with draft builder-buyer agreements had been placed on record. He also mentioned that suggestions from states had been received and incorporated. The bench stated that it would review the report of the amicus curiae and the objections to it.

Previously, the bench had allowed stakeholders, including industry associations, to submit their suggestions on these model agreements to the Union Ministry of Housing and Urban Affairs. The matter has been scheduled for a hearing on July 19.

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