Plea For Model Builder-Buyer & Agent-Buyer Agreements Under RERA: Supreme Court Issues Notice To Centre
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The Supreme Court on Monday issued notice to the Centre on a batch petitions under Article 32 raising the grievances of flat-purchasers that in the absence of uniform Builder-Buyer and Agent-Buyer Agreements, the purchasers are left to the mercy of developers over the terms and conditions imposed.The bench of Justices D. Y. Chandrachud and B. V. Nagarathna recorded that the string of...
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The Supreme Court on Monday issued notice to the Centre on a batch petitions under Article 32 raising the grievances of flat-purchasers that in the absence of uniform Builder-Buyer and Agent-Buyer Agreements, the purchasers are left to the mercy of developers over the terms and conditions imposed.
The bench of Justices D. Y. Chandrachud and B. V. Nagarathna recorded that the string of petitions seeks a direction to the central government to frame a model BBA and ABA "to infuse transparency and fairness and enhance the aims and objectives RERA, 2016".
"Senior Advocates Vikas Singh, Maneka Guruswamy and Anupam Lal Das, for the petitioners, have drawn the attention of the court to certain provisions of the RERA- section 41 provides for the establishment of a Central Advisory Council by the central government. Section 42 provides for the functions of the said Council, one of which is to advice and recommend to the central government on (1) implementation of the Act; (2) major questions of policy; (3) protection of consumer interest; and (4) growth and development of real estate; (5) any other matter. Sub-section (2) of section 42 provides that the central government has the rule-making power to effectuate the recommendations of the Council. The Act has sufficient enabling powers for the central government to frame the model agreements to subserve the public interest in ensuring buyers are nor exploited by framing standard form agreement", observed the bench, issuing notice
"This is an important issue of consumer protection, which is put on back-foot. There is no uniformity at all. It has to be achieved in the country. Builders can put in any clauses. We recently dealt with a case where the state of West Bengal enacted a law identical to the RERA and said there is no conflict as it is identical to RERA. We struck it down saying that there is still repugnancy. has to be achieved in the country", remarked Justice Chandrachud at the outset.
"There will be more contracting-out clauses otherwise if there is no model agreement", Justice Nagarathna had said.
Case No: W.P.(C) No. 1216/2020
Case Title: Ashwini Kumar Upadhyay v. UOI
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