Today(on 8th July), The Supreme Court of India, led by Chief Justice DY Chandrachud, highlighted the critical necessity to standardize builder-buyer agreements nationwide, aiming to safeguard property buyers from widespread fraud by builders, during a recent public interest litigation hearing filed by BJP leader Ashwini Upadhyay.
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NEW DELHI: Today(on 8th July), The Supreme Court of India has emphasized the urgent need for standardizing builder-buyer agreements to protect property buyers from widespread fraud perpetrated by builders across the nation. This significant observation was made by a Bench comprising Chief Justice of India DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra, during the hearing of a public interest litigation filed by Bharatiya Janata Party (BJP) leader and advocate Ashwini Upadhyay.
“Builders are defrauding buyers nationwide, underscoring the urgent necessity for standardization now.”
– remarked Chief Justice Chandrachud, highlighting the critical issue at hand.
Senior Advocate Devashish Bharuka, acting as Amicus Curiae in the case, informed the Court that a comprehensive final status report, including draft builder-buyer agreements, has been submitted.
He stated-
Builders nationwide are deceiving buyers, highlighting the pressing need for standardization.
Additionally, it was noted that feedback from various State governments has been received and incorporated into the draft agreements. This collaborative approach aims to ensure that the new standardized agreements address the concerns and suggestions of all stakeholders involved.
The push for uniformity in builder-buyer agreements is a crucial step towards safeguarding the interests of property buyers and enhancing transparency in the real estate sector. The Supreme Court’s intervention underscores the importance of regulatory measures to curb fraudulent practices and build consumer trust in the housing market.
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The Court, emphasizing the need for consistency in the implementation of real estate regulations, stated-
“We need to review the amicus report and consider CREDAI’s objections. It must be officially recorded that all states should implement it … Uniformity is essential.”
before scheduling the matter for further hearing on July 19.
This case dates back to October 2021 when the Court first issued a notice regarding the matter. Since then, significant developments have been recorded in previous hearings.
During these earlier sessions, the Court was informed that two sets of clauses have been drafted for builder-buyer agreements to ensure nationwide uniformity:
- Part ‘A’ Clauses: These clauses are proposed to be uniform across the country, providing a standardized framework for builder-buyer agreements.
- Part ‘B’ Clauses: These clauses may be added by individual States, provided they do not contradict or weaken the provisions of Part ‘A’. Additionally, they must comply with the Real Estate (Regulation and Development) Act, 2016.
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In an inclusive approach, the Court also permitted various stakeholders, including industry associations, to submit their suggestions on these model agreements to the Union Ministry of Housing and Urban Affairs. This collaborative effort aims to refine the agreements further, ensuring they serve the best interests of all parties involved.
Case Title:
Ashwini Kumar Upadhyay v. Union of India
