Central government makes model agreement between builder and buyer: Supreme Court

Supreme Court directs Center to protect consumer interests

Documents prepared by builders contain a number of confusing terms that the customer is not even aware of: Supreme

New Delhi: The Supreme Court on Monday said that the existence of an ideal agreement between builders and home buyers for the protection of consumers in the real estate sector is essential for the country as builders refer to all the confusing terms and conditions in their contracts. Which is not even known to the average customer.

Justices DYY Chandrachud and B.V. Following a petition filed in this regard, the Nagaratna bench asked the Center to respond by sending an oak notice.

The bench observed that the documents prepared by the builders contain so many confusing terms and conditions that the general customer is not aware of it so it is imperative for the country to have an ideal agreement between the builders and the buyer to protect the interests of the customers.

Senior advocate Vikas Singh, appearing in the court on behalf of petitioner advocate Ashwini Upadhyay, argued before the bench that it was necessary to have an ideal agreement drawn up by the central government as some states had even drafted and implemented such an ideal agreement.

But there is still no such agreement in place in some states and there is no consensus on the issue. .

Further arguing on behalf of the petitioner, Singh said that even in the states where the ideal contract between the builder-buyer is being implemented, the builders try to enter into documents as per their wishes by colluding with government officials. States and Union Territories should be ordered to implement it.

Advocate Maneka Guruswamy, appearing in court on behalf of the home buyers, said they too were in favor of enforcing such agreements to protect the interests of the consumers.

He said he also supported the argument put forward by Sindh. The bench said that it sends notice to the respondent (Central Government) in this regard and seeks reply. A public interest litigation was filed in the Supreme Court by advocate Ashwini Upadhyay to protect the interests of consumers, which was heard today.

The petition also sought to bring transparency to those whose biggest losses are in real estate. Builders, promoters and agents, at their discretion, insert conditions into the documents which do not give the consumer an equal opportunity, which is a clear violation of Articles 14, 15 and 21 of the Indian Constitution, the petition said.