Don’t shirk, create model builder-buyer pact, SC tells Center | India News

NEW DELHI: Dismissing the Center’s position “it’s the responsibility of the states”, the Supreme Court on Monday asked the Union government to draft model national builder-buyer and agent-buyer agreements to prevent buyers from apartments to remain at the mercy of real estate agents and get cheated by them.
A group of PILs are seeking direction from the Center to develop model agreements in this area under the provisions of Sections 41 and 42 of the Real Estate (Regulation and Development) Act 2016, under which the Authority Real Estate Regulatory Authority (RERA) was created. at the top. But, the Center in its response affidavit said it had no role to play in this regard and that by law it was up to the states to develop the model agreements.

A panel of judges DY Chandrachud and Surya Kant persuaded the Center not to take a hands-off approach and get involved in drafting standard agreements to protect unsuspecting middle-class apartment buyers who are often Stealing their hard-earned money because of builder-framed sales agreements that title strongly towards real estate agents.
“Instead of leaving it up to the states, the Center can develop a national model law. Builders often prepare a bulky sales contract document with clauses that help them defraud apartment buyers. We are concerned about the fate of the middle class who get caught up in the web of such builder-focused sales deals,” the bench said.

Solicitor General Tushar Mehta has agreed to personally review the matter and respond in two weeks. The bench said that “model builder-buyer and agent-buyer agreements must contain certain clauses (to protect middle-class apartment buyers from scams) that must be non-negotiable even if states wanted to change the agreements. models in accordance with the prevailing situation in the respective States.”
When the bench reviewed PILs filed by Ashwini Kumar Upadhyay, Tarun Kumar Gera, Jim Thomson and Nagarjuna Reddy for hearing, lead counsel Menaka Guruswamy said that under Sections 41 and 42 of the RERA, the Center has a precise role to play in the framing model agreements. Petitioners had complained in court that under RERA states were mandated to develop uniform/model builder-buyer agreements, but most states have yet to complete the exercise, even after five years. entry into force of the RERA.
They said standard agreements should incorporate clauses to require builders to compensate homebuyers for delays in delivery of possession of apartments, ensure buyers are protected from surcharges such as interest and payment and penalize the builder in the event of default. in build quality.
Judge Chandracud recalled a judgment he wrote regarding the West Bengal RERA. The SC had thwarted the TMC government’s attempt to set up a parallel property sector regulatory regime as the SC on May 4 last year struck down the Housing Industry Regulation Act 2017 of West Bengal (WB-HIRA), as being unconstitutional for being either a copy of or in conflict with the central legislation Real Estate (Regulation and Development) Act (RERA), 2016.

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