SC calls for national level buyer-builder agreement, says can't be left to individual state governments

The Supreme Court on Monday told the Centre that it would prefer a national-level model builder-buyer agreement to deter real estate developers from fleecing unwitting homebuyers. The top court emphasised that it was not in favour of individual state governments drafting such an agreement.

A bench of Justices D Y Chandrachud and Surya Kant said if the central government can engage with central advisory council (CAC) under Real Estate Regulation and Development Act (RERA) to create a national model on builder-buyer agreement, then it would act as a deterrent for builders from fleecing unwitting homebuyers.

“Consider it in broader public interest….we want a central national model for states to implement,” the bench told Solicitor General Tushar Mehta, representing the Centre, while stressing that this is an important issue.

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Senior advocate Menaka Guruswamy, representing one of the petitioners, submitted Sections 41 and 42 of RERA, gave enough room for the central government to act. However, the Union government has filed a reply, saying that they don't have any role to play in the matter.

The bench said this agreement cannot be left to individual state governments. The court also pointed out that it had earlier struck down West Bengal's law on regulating the real estate sector.

The bench said the model agreement should include some essential terms to protect the interest of homebuyers. The top court fixed the PIL filed by BJP leader and advocate Ashwini Kumar Upadhyay for further hearing after two weeks.

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