Home-buyers Being Defrauded across India, Uniformity Needed in Builder-buyer Agreements: SC

Debayan Roy (Bar and Bench) 08 July 2024

Consumer Interest

The Supreme Court Monday remarked that there was a need for bringing uniformity in the builder-buyer agreements as property buyers were being defrauded by the builders across India (Ashwini Kumar Upadhyay v. Union of India).

A Bench of Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Justice Manoj Misra made the observation while hearing a public interest litigation moved by Bharatiya Janata Party (BJP) leader and advocate Ashwini Upadhyay for the formulation of uniform builder-buyer agreements.

"Buyers are being defrauded by builders all across and that is why the need for uniformity now," CJI Chandrachud said.

Senior Advocate Devashish Bharuka, who is Amicus Curiae in the case, earlier told the Court that a final status report along with the draft builder-buyer agreements has been placed on record.

It was also submitted that suggestions of State governments in this regard have been received and incorporated.

"We need to see the amicus report and we will (see) objections of CREDAI. We have to take it on record and say that all States need to implement it ... It needs uniformity," the Court said before posting the matter for further hearing on July 19.

The Court had issued notice in the matter in October 2021.

During earlier hearings, the Court had been informed that the following has been placed on record,

- Part ‘A’ clauses of builder-buyer agreements which are proposed to be uniform across the country.

- Part ‘B’ clauses of builder-buyer agreements which may be inserted by the States, subject to the condition that they should not be contrary to or dilute the clauses of Part ‘A’ and must conform to the provisions of Real Estate (Regulation and Development) Act 2016.

The Court had also permitted stakeholders, including industry associations, to furnish their suggestions on these model agreements to the Union Ministry of Housing and Urban Affairs.

Courtesy: Bar & Bench

Comments

User

rakeshmodi14

8 months ago

But what if builder don't make agreement only as in my case Anand Dargar of Metro infrastructure, Mulund Mumbai not made PAAA till date since 9 years, delayed our project Saraswati Square, not paying rents, done many blunders and selling flats to outsiders which is a contempt of Bombay High Court order. No politicians, MP, MLA, CM had helped me till date when we had voted for them.--9819993972