The Supreme Court has observed that homebuyers across the country are being defrauded by builders, necessitating uniformity in builder-buyer agreements. The court recently heard a PIL filed by lawyer Ashwini Upadhyay, seeking the creation of a model agreement to ensure transparency and fairness and to restrain builders and agents from engaging in unfair and restrictive trade practices. The bench stated that buyers are being defrauded by builders all across the country, which is why there is a need for uniformity. The court will review the report of the amicus curiae and the objections to it, with the matter scheduled for further hearing on July 19.
Earlier this month, the Supreme Court observed that homebuyers across the country are being defrauded by builders, necessitating the need to bring uniformity in builder-buyer agreements. The bench comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra stated, "Buyers are being defrauded by builders all across and that is why the need for uniformity now."
The court was hearing a Public Interest Litigation (PIL) filed by lawyer Ashwini Upadhyay in 2021, which sought the creation of a model agreement to ensure transparency, fairness, and to restrain builders and agents from engaging in unfair and restrictive trade practices.
Senior advocate Devashish Bharuka, acting as amicus curiae (friend of the court), informed the bench that a final status report along with draft builder-buyer agreements had been placed on record. Additionally, the suggestions from various states had been received and incorporated.
The bench indicated that it would review the report of the amicus curiae and the objections to it. Earlier, the court had allowed the stakeholders, including industry associations, to provide their suggestions on these model agreements to the Union Ministry of Housing and Urban Affairs. The matter has been scheduled for further hearing on July 19.
The Supreme Court's intervention in this matter is a welcome step to address the widespread issue of homebuyer fraud. The push for uniform builder-buyer agreements could go a long way in restoring trust and accountability in the real estate sector, protecting the interests of homebuyers, and promoting transparency and fair practices.
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