In a notice issued to the BJP-led Central government, the Supreme Court has asked to frame model agreements for the builder-buyer and the agent-buyer deals in order to ensure more transparency in the real estate sector and protect the interests of the buyers. The move has come after a PIL filed by advocate and BJP leader Ashwini Upadhyay. A report by SURFACES REPORTER (SR).
A Supreme Court bench led by Justice DY Chandrachud ordered that a uniform builder-buyer agreement, in confirmation with the Real Estate (Regulation and Development) Act, 2016 is required to be framed by the Centre to protect interests of lakhs of homebuyers.
A crucial issue
Noting that the concerns raised by PIL are important for the protection of buyers who are often put on the back foot by clauses in agreements made by builders, the court said that a model BBA will keep builders in check.
The PIL filed by Ashwini Upadhyay sought a direction to all states to enforce a model builder-buyer agreement and a model agent-buyer agreement and to take steps to avoid "mental, physical and financial injury" to customers.
"Promoters, builders and agents use manifestly arbitrary one-sided agreements that do not place customers at an equal platform with them, which offends Articles 14, 15, 21 of the Constitution. There have been many cases of deliberate inordinate delays in handing over possession and customers lodge complaints but the police don't register FIRs, citing arbitrary clauses of the agreement," it stated.
“Builders issue revised delivery schedule again and again and adopt arbitrary unfair restrictive trade practices. All this amounts to criminal conspiracy, fraud, cheating, criminal breach of trust, dishonestly inducing delivery of the property, dishonest misappropriation of property and violation of corporate laws," it added.
The housing ministry had earlier brought out a model builder-buyer agreement for residential projects, but no state had adopted it fully. Only Union Territories have notified the agreement in complete alignment with the central rules.
Keep reading SURFACES REPORTER for more such articles and stories.
Join us in SOCIAL MEDIA to stay updated
SR FACEBOOK | SR LINKEDIN | SR INSTAGRAM | SR YOUTUBE
Further, Subscribe to our magazine | Sign Up for the FREE Surfaces Reporter Magazine Newsletter
Also, check out Surfaces Reporter’s encouraging, exciting and educational WEBINARS here.
You may also like to read about:
No relief for Supertech | SC asks to demolish both towers| Emerald Court, Noida| SURFACES REPORTER Realty News Update
GIHED- CREDAI Property show postponed till January| Ahmedabad | SURFACES REPORTER Real Estate News Update
“Demolish only one tower,” Supertech pleads Supreme Court| Emerald Court Twin Towers | Noida, New Delhi | SURFACES REPORTER Realty News Update