SC asks Centre to consider framing model builder-buyer agreement

A Bench of Justices DY Chandrachud and Surya Kant once again emphasized the need for a model builder-buyer agreement to safeguard the interest of middle-class home buyers.

The Bench opined that it wants that instead of leaving it to the States, the Centre makes the model builder-buyer agreement and model agent-buyer agreement which shall be applicable for the whole of the country.

"We are concerned about the broader public interest of the middle-class home buyers," the apex court said.

Saying that there was a need for a model builder-buyer and agent-buyer agreements, the Bench asked Solicitor General Tushar Mehta, appearing for Centre, to seek a considered view on the issue.

The top court said that at present what is happening is that builders are putting up in the agreement whatever conditions they want and the model builder-buyer agreement must have some existential terms, which cannot be deviated.

The top court now posted the matter for hearing after two weeks.

Earlier, the apex court had issued notice to the Centre on the plea seeking direction to frame model pacts for builder and agent buyers to protect customers and bring in transparency in the realty sector in tune with the Real Estate Regulatory Authority (RERA) Act 2016.

It had observed that "this is an important issue on the protection of buyers".

The apex court had observed that such an agreement would help to protect home or flat buyers from being exploited by builders.

The plea has been asking to protect the rights and interests of customers.

The petition filed by advocate Ashwini Kumar Upadhyay sought directions from the top court to the Centre to frame a model Builder Buyer agreement and model Agent Buyer agreement in order to infuse transparency, reduce frauds and restrain builders and or promoters from indulging in arbitrary unfair and restrictive trade practices.

The petitioner said all states should also enforce the model Builder Buyer agreement and model Agent Buyer agreement and take appropriate steps to avoid "mental, physical and financial injury".

The petitioner sought accountability towards customers and developed an effective mechanism to weed out a criminal conspiracy for wrongful gains, criminal breach of trust and "dishonest misappropriation of buyers' money by promoters and agents".

Upadhyay, in his petition, also sought directions to compensate buyers for losses incurred due to inordinate delay on the part of promoters and to recover the money, "misappropriated by promoters and agents under the garb of taxes, interests, penalties and other charges". (ANI)