Supreme Court defers hearing in plea seeking model builder buyer agreements, asks Solicitor General Tushar Mehta to assist the Court

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The Supreme Court on Monday deferred hearing in a plea seeking direction to the Central Government to frame a 'Model Builder Buyer Agreement' and 'Model Agent Buyer Agreement to infuse transparency, ensure fair-play reduce frauds in the spirit of objects of the RERA Act 2016 and Constitution of India.

A bench of Justice DY Chandrachud and Justice Surya Kant asked Solicitor General Tushar Mehta to look into the matter and seek instructions on the same.

The Petition filed by Advocate Ashwini Kumar Upadhyay has stated that the directions are required to ensure accountability and develop a mechanism to weed out the criminal conspiracy for wrongful gain, criminal breach of trust and dishonest misappropriation of buyers money committed by promoters, builders and agents.

Justice Chandrachud stated that "the Union of India can consider, to formulate a Builder Buyer Agreement, what is happening is builders are putting up whatever they want."

To which SG Mehta submitted that he'll appear in the matter and assist the Court.

Petitioner Ashwini Kumar Upadhyay submitted that "The entire agreement is always in English, it should be short, crisp and in two languages English and local language."

The bench responded by stating that this is not an issue, once a format is there, language is not a task.

Justice Chandrachud indicated that we are not inclined to leave it to the States, in another matter some State had copied the whole RERA Act. Some part needs to be non-negotiable in the interest of the consumer.

The plea has alleged that the injury caused to the public is extremely large because builders, promoters, and agents use arbitrary and one-sided agreement that does not place customers on an equal platform with them.

The plea has further sought directions from the court to provide compensation to the buyers who suffer losses due to inordinate delays on the part of promoters, builders, and agents.

The plea states that "There have been many cases of deliberate inordinate delay in handing over possession. Buyers lodge complaints but the police doesn't register FIRs, citing arbitrary clauses of the agreement."

The petitioner has made a party to Central Government and Governments of all the States and Union Territories along with the Law Commission stating that as none of the States till date has notified and enforced RERA Act and framed 'Model Builder Buyers Agreement' and 'Model Agent Buyer Agreement' ensuring transparency and fair-play.

Earlier, the Court had asked Additional Solicitor General KM Nataraj to assist the Court in the plea seeking direction to the Central Government, to frame a 'Model Builder Buyer Agreement' and 'Model Agent Buyer Agreement'. 

Case Title: Ashwini Kumar Upadhyay Vs. Union of India & Ors.