SC notice to Centre on plea seeking directions for model builder buyer agreement

New Delhi [India], October 4 : The Supreme Court on Monday issued notice to the Centre seeking direction to frame model pacts for builder and agent buyers to protect customers and bring in transparency in the realty sector in tune with the Real Estate Regulatory Authority (RERA) Act 2016.
A Bench headed by Justice DY Chandrachud sought a response from the Centre and said, "This is an important issue on the protection of buyers."
The apex court observed that such an agreement would help to protect home/flat buyers from being exploited by builders.
The petition filed by advocate Ashwini Kumar Upadhyay sought directions from the top court to the Centre to frame a model builder-buyer agreement and model agent-buyer agreement in order to infuse transparency, reduce frauds and restrain builders and or promoters from indulging in arbitrary unfair and restrictive trade practices.
The petitioner said all states should also enforce the model builder-buyer agreement and model agent-buyer agreement and take appropriate steps to avoid "mental, physical and financial injury".
The petitioner sought accountability towards customers and developing an effective mechanism to weed out a criminal conspiracy for wrongful gains, criminal breach of trust and "dishonest misappropriation of buyers' money by promoters and agents".
Upadhyay, in his petition, also sought directions to compensate buyers for losses incurred due to inordinate delay on the part of promoters and to recover the money, "misappropriated by promoters and agents under the garb of taxes, interests, penalties and other charges".