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- The Terms of the Builder buyer agreement are different in every state, the Demand for the same will be heard in the Supreme Court.
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New DelhiOne hour ago
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Advocate Ashwani Upadhyay told the Supreme Court that such cases are constantly coming that the buyer is helpless in front of the builder’s arbitrariness. The court finds that the agreement itself is very complex. (Symbolic photo)
The Supreme Court has agreed to hear the demand to implement a uniform format of agreement between home buyers and builders across the country. A bench headed by Chief Justice SA Bobde said on Monday, “The terms of agreement are different in 20 states. We have to see whether the central government can make a model or not? 62 flat buyers of West End Heights (DLF), Bengaluru have filed a petition in the Supreme Court.
He has demanded the implementation of a uniform ‘builder-buyer agreement’ in all states to ensure fairness and transparency in line with the spirit of Articles 14 and 21 of the RERA Act and the Constitution. The petitioners’ counsel Maneka Guruswamy said that there are huge disparities in the agreements in different states. In such a situation, we are unable to pursue legal action against the builder companies. Therefore, the terms of the agreement should be uniform and equitable throughout the country. Chief Justice Bobde said- ‘We will look into this issue. Will hear a week later.
NewsBust India Explanner- The legal problems of the agreement are not understood by the people, the same problem: Ashwani Upadhyay, Advocate, Supreme Court
Why was a similar model needed?
The terms of agreement are different in each state. Somewhere a 20-page agreement is made of a 12-page agreement. It is still very complex, which despite reading it, it is almost impossible for the common people to understand its legal framework. Taking advantage of this, some builders add arbitrary conditions to the agreement, which the buyer realizes later. The agreement can only be of 2 pages. If it is in local language instead of English then it would be fine.
What is the difference between states’ agreements?
very much. States have their own rules. We are constantly getting such cases that buyers are helpless in front of the builder’s arbitrariness. The court finds that the agreement has become very complex.
What kind of messes are there?
For example, in most states, the builder agreement also adds a condition that if the flat installment check bounces, the buyer will have to pay interest from 12% to 18% as compensation. Whereas, there is no mention that if the possession is given in 5 years instead of 3, then the builder will also have to pay the same interest on the amount recovered from the buyer.
What should be in the same agreement?
As such, there is no strict provision for action or penalty on the builder for not giving possession of the flat on time. If a builder has mentioned Italian tiles, swimming pool etc. and does not meet them, then the rule of action on that would not be recorded in the agreement. There are many things that need to be added to the agreement.
How would a model benefit?
If the buyer delays the payment or the builder does not deliver on time, both parties should face an equal penalty. The builders will not be able to make air-to-air promises. For example, many builders talk of providing five-star facilities in the flat, but nothing like this happens.
How can a similar model be formed?
The new blueprint should be decided by the Center only then it can be implemented simultaneously in the states. It should be at least in the page and in the local language.
A similar model possible, this will enable buyers to be safe
The RERA chief of Uttar Pradesh, Rajiv Kumar, said that the problem that is present at the time of formation of RERA is the project under construction or earlier. A model will protect buyers’ interests. At the same time, CREDAI chairman Zakshya Shah said that it takes a lot of time to approve projects etc. in different states. Looking at Rera’s track record, we do not have any problem if a similar model is made.