Model builder-buyer agreement: Important matter in public interest: SC

New Delhi: The Supreme Court said a model builder-buyer agreement is needed in the real estate sector and the Centre should file its reply on the issue as it is an “important matter in the public interest”. A bench of Justices DY Chandrachud and AS Bopanna asked Additional Solicitor General KM Nataraj to seek instruction […]

New Delhi: The Supreme Court said a model builder-buyer agreement is needed in the real estate sector and the Centre should file its reply on the issue as it is an “important matter in the public interest”.

A bench of Justices DY Chandrachud and AS Bopanna asked Additional Solicitor General KM Nataraj to seek instruction and file the reply by November 22.

“It is an important matter and not an adversarial issue. This is an important matter in the public interest. Government has the power to make a model builder-buyer agreement under RERA. Please look into it and file your reply by November 22. A group of home buyers has come to this court seeking such model agreement,” the bench told Nataraj.
The top court asked petitioner in-person advocate Ashwini Upadhyay to prepare a short note on the issue and share it along with the petition with the law officer.

On October 4, the top court had said it is important for the country to have a model builder-buyer agreement in the real estate sector for consumer protection because developers try to put numerous clauses in it, which common people may not be aware of.
It had issued notice to the Centre on the plea and had sought its response.

Upadhyay had said that there should be a model agreement prepared by the Centre as some States have it and some don’t, and there is no uniformity in those agreements.
Senior advocate Vikas Singh earlier appearing for Upadhyay had said that in States which have model agreements, builders try to influence the conditions to be incorporated, and hence, the Centre should frame it and directions be issued to all the states and Union Territories to implement the model agreement.

The PIL filed by Upadhyay has sought direction to the Centre to frame model pacts for builders and agent buyers to protect customers and bring in transparency in the realty sector in line with the Real Estate Regulatory Authority (RERA) Act, 2016.

The plea, which was filed in October last year, has also sought a direction to all states to enforce the ‘Model Builder Buyer Agreement’ and ‘Model Agent Buyer Agreement’ and to take steps to avoid “mental, physical and financial injury” to customers.

Due to deliberate excessive delays in possession, real estate customers are not only suffering mental and financial injury but also a brazen violation of their right to life and livelihood stated the PIL filed through advocate Ashwani Kumar Dubey.

It has also sought directions to compensate the buyers for losses incurred due to inordinate delays on the part of Promoters-Builders and to recover their money.