Breaking News Supreme Court issues notice in plea seeking model builder-buyer...

Supreme Court issues notice in plea seeking model builder-buyer agreement to protect buyers from delay and fraud by real estate promoters


New Delhi, Oct 4 (ILNS) The Supreme Court today issued a notice on a bunch of writ petitions, including a PIL, seeking directions to the Centre to frame the ‘Model Builder-Buyer Agreement’ and ‘Model Agent-Buyer Agreement’ to infuse transparency, ensure fair play, reduce fraud and deliberate delays, restrain promoters and agents from indulging into arbitrary unfair and restrictive trade practices and to protect the rights and interests of customers of real-estate.

A bench comprising Justice D.Y. Chandrachud and Justice B.V. Nagarathna observed that the promoters and agents of the real estate property are using lopsided agreement for misappropriation of buyers’ hard-earned money, violating their fundamental rights. 

It is further observed that the main cause of hardship is the one-sided agreements and the promoters are neither ready to compensate the buyers for the inordinate delay nor do they provide the amenities promised during booking.

It is very correct, there has to be the protection of customers in RERA otherwise the builder would make any clause to cheat/ fraud the buyers.”

Senior Advocate Vikas Singh, and advocate Ashwini Kumar Upadhyay, appearing on behalf of the petitioner, sought directions to compensate buyers for losses incurred due to inordinate delays on part of promoters/ builders and recover their hard-earned money, fraudulently misappropriated by builders under the garb of taxes, interests, penalties and other charges. 

Singh submitted that the States were required to notify and enforce RERA Act, but they failed to do so within the due date and subsequently the State failed again. Till date, not even one state has framed the “Model Builder Buyer Agreement” and “Model Agent Buyer Agreement” which is against the spirit of aims and objectives of RERA act 2016 and Article 14, 15, 21 of the Constitution.

He further stated that there is an enabling provision to frame model agreements that will serve the purpose so that buyers of real estate are not cheated. As per section 41 of the RERA, the Central Government is required to establish the Central Advisory Council which has not been done yet./ILNS/SNG/IL


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