The Central Government proposes to submit before the Supreme Court a model builder-buyer agreement with mandatory clauses that states and union territories cannot negotiate.
It has been submitted to the Court by Aiswharya Bhati, Additional Solicitor General, and amicus curiae Devashish Bharuka that the model agreement will include Part A. It contains core clauses in compliance with the mandatory provisions of the Real Estate (Regulation and Development) Act 2016 to protect home buyers and Part B, which includes additional clauses as per individual State/UT requirements. It is important to note that these additional clauses will not conflict with or dilute the clauses in Part 'A' .
In response to these submissions, a bench composed of Justices DY Chandrachud and Hima Kohli posted the matter for further consideration on November 28.
A model builder-buyer agreement has been outlined in the PIL filed by Ashwini Upadhyay. Previously, the Supreme Court ruled that a model agreement would protect home buyers' interests and asked the Union to formulate one after consulting the states. To determine whether essential norms have been incorporated into the State's RERA rules, the Court later asked the Union to review them.
The following States had not submitted their responses by September 30: (i) Andhra Pradesh; (ii) Chhattisgarh; (iii) Gujarat;(iv) Jharkhand;(v) Madhya Pradesh;(vi) Maharashtra;(vii) Manipur;(viii) Mizoram;(ix) Odisha;(x) Uttar Pradesh; and (xi) West Bengal.
In contrast, thirteen States and two Union Territories have filed responses. The states that have not filed their responses were directed to do so positively within four weeks from today. Otherwise, the Principal Secretaries of the State Government in the Ministry of Urban Development/Affairs must appear personally before the Court on the upcoming hearing date. They must explain why they should not be pursued under the coercive arm of the law.
Similarly, the Haryana and Maharashtra wings of the Confederation of Real Estate Developers Associations of India (CREDAI) informed the Court that they would reply.
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