Wednesday, April 24, 2024

Model builder-buyer agreement: Supreme Court posts matter for November 28 after Centre says will submit sample

The Supreme Court has posted for November 28, the matter related to the submission of a model builder-buyer agreement, after the Central government submitted that it will file a proposed agreement before the court with mandatory clauses, which cannot be altered by the States and Union Territories.

The Bench of Justice D.Y. Chandrachud and Justice Hima Kohli on Friday adjourned the hearing on a petition filed by Advocate Ashwini Kumar Upadhyay, seeking a model builder-buyer agreement.

Additional Solicitor General Aiswharya Bhati, appearing for the Central government, along with Amicus Curiae Devashish Bharuka, apprised the Court that the model agreement will have Part A, which will have core clauses with the mandatory provisions of the Real Estate (Regulation and Development) Act 2016 for the protection of home buyers and Part B, which will contain additional clauses as per the requirements of the individual States/UTs.

They added that these additional clauses, however, will not be contrary to or dilute in any manner the clauses in Part ‘A’.

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Observing that a model agreement was necessary to protect the interests of home buyers, the Supreme Court had earlier asked the Union of India to frame a model agreement after taking inputs from the States.

The Central government was later directed to scrutinise the rules framed by the States under RERA to ascertain whether essential norms have been incorporated.

During its last hearing on September 30, the Apex Court had noted that only 13 States and two Union Territories had filed their responses on the issue, while 11 States were yet to file the same. 

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The Court directed the States, which had not filed their responses, to do the same positively within four weeks, failing which the Principal Secretaries of the State Government in the Ministry of Urban Development/Affairs would be summoned on the next date of hearing to explain as to why they should not be proceeded with under the coercive arm of law.
The States wings of the Confederation of Real Estate Developers Associations of India (CREDAI) in Haryana and Maharashtra apprised the top court of the country that they will also file their responses over the matter.

Case Title: Ashwini Kumar Upadhyay versus Union of India


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