New Delhi:The Supreme Court on Monday emphasised on having uniform builder-buyer agreements across the country to protect the property buyers, who are vulnerable of being defrauded by builders nationwide.
A three-judge bench led by Chief Justice of India D Y Chandrachud and comprising Justices J B Pardiwala and Manoj Misra said there has to be some uniformity on what builders can impose on the buyers. "Otherwise, buyers across the country are being defrauded by the builders," said the bench.
Senior advocate Devashish Bharuka, who has been assisting the bench as the amicus curiae, contended that a final status report and draft builder-buyer agreements have been submitted, and it has incorporated suggestions from state governments.
The bench said it is important to review the amicus report and consider the objections raised by the Confederation of Real Estate Developers’ Associations of India (CREDAI). After a brief hearing, the apex court scheduled the matter for further hearing on July 19. The top court was hearing a public interest litigation (PIL) filed by advocate Ashwini Upadhyay in 2020.
In October 2021, the apex court issued notice to the Centre, states, union territories and the Law Commission of India, referencing sections 41 and 42 of RERA which mandate the central advisory council to recommend the framing of standard agreements to prevent the exploitation of real estate buyers.
In January 2022, the apex court emphasised on the need for a "national model builder-buyer agreement" to ensure that homebuyers are not subjected to arbitrary and whimsical clauses imposed on them by the real estate developers. The apex court had asked the Centre to frame a standard form for housing agreement, emphasising the importance of certain non-negotiable terms to protect buyers. The petitions’, filed by others besides Upadhyay, had cited the persistent inaction by builders in completing promised amenities.
