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Central Govt. Recommends Model Builder-Buyer Agreement with Compulsory RERA Clauses to SC

2 min read
Supreme Court Law Insider

Sakina Tashrifwala

Published on: October 6, 2022 at 19:06 IST

The Central Government has recommended to the Supreme Court, a model builder-buyer agreement that includes mandatory RERA clauses that cannot be changed by the states or union territories.

The model agreement, according to Additional Solicitor General Aishwarya Bhati and Amicus Curiae Devashish Bharuka, 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.

These extra provisions, however, will not contradict or diminish the clauses in Part ‘A.’

Taking notice of these submissions, a bench comprised of Justices DY Chandrachud and Hima Kohli scheduled a hearing on the subject on November 28.

The development occurred in Ashwini Upadhyay’s PIL, which sought a model builder-buyer agreement.

Previously, the Supreme Court stated that a model agreement was required to safeguard the rights of property buyers and requested the Union to draught one with participation from the states.

Later, the Court directed the Union to examine the regulations drafted by the states under RERA to see if important standards had been adopted.

The following states had not filed their answers as of September 30:

  1. Andhra Pradesh;
  2. Chhattisgarh;
  3. Gujarat;
  4. Jharkhand;
  5. Madhya Pradesh;
  6. Maharashtra;
  7. Manipur;
  8. Mizoram;
  9. Odisha;
  10. Uttar Pradesh; and
  11. West Bengal

In contrast, thirteen states and two union territories have submitted their answers.

States that have not filed their responses have been directed to do so positively within four weeks of today, failing which the Principal Secretaries of the State Government in the Ministry of Urban Development/Affairs must personally appear before the Court on the next date of hearing to explain why they should not be pursued under the coercive arm of the law.

The Confederation of Real Estate Developers Associations of India (CREDAI) Haryana and Maharashtra branches have also informed the Court that they will respond.