On Monday, the Supreme Court emphasized the need for uniformity in builder-buyer agreements, highlighting that property buyers are being defrauded by builders across India [Ashwini Kumar Upadhyay v. Union of India].
A Bench consisting of Chief Justice of India DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra made this observation while hearing a public interest litigation filed by Bharatiya Janata Party (BJP) leader and advocate Ashwini Upadhyay, seeking the formulation of uniform builder-buyer agreements.
“Buyers are being defrauded by builders all across, and that is why there is a need for uniformity now,” remarked CJI Chandrachud.
Senior Advocate Devashish Bharuka, who serves as Amicus Curiae in the case, informed the Court that a final status report, along with the draft builder-buyer agreements, has been submitted. He also mentioned that suggestions from State governments have been received and incorporated.
“We need to review the amicus report and consider objections from CREDAI. We have to take it on record and ensure that all States implement it. It needs uniformity,” the Court stated before scheduling the next hearing for July 19.
The Court had issued notice in this matter in October 2021. During previous hearings, it was noted that the following had been submitted:
Part ‘A’ clauses of builder-buyer agreements proposed to be uniform across the country.
Part ‘B’ clauses of builder-buyer agreements that may be added by the States, provided they do not contradict or dilute the clauses of Part ‘A’ and must comply with the Real Estate (Regulation and Development) Act 2016.
The Court also allowed stakeholders, including industry associations, to submit their suggestions on these model agreements to the Union Ministry of Housing and Urban Affairs.
