'An Important Issue Of Consumer Protection': Supreme Court Emphasise On The Need To Frame Model Builder-Buyer Agreement Under RERA, Asks ASG To Assist The Court

Noting that it is a "very important issue of public interest", the Supreme Court on Monday asked ASG K. M. Nataraj to assist the Court on the issue of the need for the framing of a model agreement for builder-buyers under the RERA.The bench of Justices D. Y. Chandrachud and A. S. Bopanna was hearing a string of petitions under Article 32 raising the grievances of flat-purchasers that in the absence of uniform Builder-Buyer and Agent-Buyer Agreements, the purchasers are left to the mercy of developers over the terms and conditions imposed.On October 4, the Court had issued notice to the Centre on the pleas filed by Advocate Ashwini Upadhyay, A Group of DLF home Buyers And others.On Monday, the bench was informed that no vakalatnama has been filed on behalf of the Centre so far.Then, Justice Chandrachud asked ASG Nataraj, who was appearing before the bench in an unconnected matter, to assist the Court."This is an important matter where the issue is about the need to frame a model builder-buyer agreement under the RERA. The government has the power to do so...a group of homebuyers has come to the court. This is not an adversarial matter. This is a very important issue of public interest. Kindly help us", Justice Chandrachud said, addressing the ASG.The judge required a copy of the petition to be served on the ASG.The bench then proceeded to post the matter after 2 weeks in order to grant adequate time to the ASG.On October 4, the bench of Justices D. Y. Chandrachud and B. V. Nagarathna recorded that the string of petitions seeks a direction to the central government to frame a model BBA and ABA "to infuse transparency and fairness and enhance the aims and objectives RERA, 2016"."Senior Advocates Vikas Singh, Maneka Guruswamy and Anupam Lal Das, for the petitioners, have drawn the attention of the court to certain provisions of the RERA- section 41 provides for the establishment of a Central Advisory Council by the central government. Section 42 provides for the functions of the said Council, one of which is to advice and recommend to the central government on (1) implementation of the Act; (2) major questions of policy; (3) protection of consumer interest; and (4) growth and development of real estate; (5) any other matter. Sub-section (2) of section 42 provides that the central government has the rule-making power to effectuate the recommendations of the Council. The Act has sufficient enabling powers for the central government to frame the model agreements to subserve the public interest in ensuring buyers are nor exploited by framing standard form agreement", observed the bench, issuing notice"This is an important issue of consumer protection, which is put on back-foot. There is no uniformity at all. It has to be achieved in the country. Builders can put in any clauses. We recently dealt with a case where the state of West Bengal enacted a law identical to the RERA and said there is no conflict as it is identical to RERA. We struck it down saying that there is still repugnancy", remarked Justice Chandrachud at the outset."There will be more contracting-out clauses otherwise if there is no model agreement", Justice Nagarathna had said.Case Title: Ashwini Kumar Upadhyay v. Union Of India And OrsClick Here To Read/Download The Order

'An Important Issue Of Consumer Protection': Supreme Court Emphasise On The Need To Frame Model Builder-Buyer Agreement Under RERA, Asks ASG To Assist The Court

Mehal Jain

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