SC makes mandatory on Builder-buyer agreement

To protect the interests of the buyers, Supreme Court has insisted on the formulation of builder-buyer model agreement. It asked the Centre to furnish its contention on or before November 22 as the agreement is vital to protect the extensive interests of the consumers.

A SC Bench comprising Justice DY Chandrachud and Justice AS Bopanna issued the orders. From the perspective of safeguarding the public interests it is an important issue, the Bench opines. That is why it asked the Centre to make clear its stand by Nov 22. As the builders are likely to interpolate several clauses in the agreement to the detriment of the buyers, the SC Bench insisted on the model agreement to protect the buyers from the gimmicks played by the developers. To protect the interests of the buyers and to inject greater transparency in realty sector, the SC laid emphasis on the formulation of model agreement.

Aswini Upadhya, an advocate, has filed petition in the SC insisting on the need for formulation of model agreement. The builders are likely to impact adversely the model agreement between buyers and builders already in vogue in several states. There is no uniformity in the model agreements. In this backdrop, the advocate sought directions from the court on a fresh model agreement.