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Consumer Protection: India Needs A Model Builder-Buyer Agreement, Says SC

New Delhi: The Supreme Court on Monday said it is important for India to have a model builder-buyer agreement.

Justices D Y Chandrachud and B V Nagarathna were of the view that a model agreement is needed in the real estate sector to protect consumers as developers often put clauses which common people may not be aware of.

The two-judge bench, hearing a petition filed by advocate Ashwini Upadhyay, issued notice to the Central government and sought its response on the issue.

“It is very important for consumer protection, because builders try to put any number of clauses in the agreement which common people may not be aware of. There should be some uniformity in the agreement. It is important that this (model builder-buyer agreement) is achieved in the country,” the bench said.

Senior advocate Vikas Singh, who appeared for the petitioner, said the Centre should prepare a model agreement so that there is a uniformity across the country.

The PIL, which was filed in October 2020, seeks direction to the Centre to frame model agreements for builders and agent buyers to ensure customer protection and transparency in the realty sector in line with Real Estate Regulatory Authority (RERA) Act, 2016.

Senior advocate Maneka Guruswamy, who appeared for a group of home buyers, submitted that they also want a model agreement to be implemented to safeguard interest of consumers.