On 30-09-2022, The Supreme Court of India comprising of division bench Justice D.Y. Chandrachud and Justice Hima Kohli in the case of Ashwini Kumar Upadhyay v. Union of India & ors , THE Additional Solicitor General and amicus curiae suggested before the Court that the Central Government along with the amicus curiae would prepare a model agreement for sale containing two Parts
Part A: ‘Core’ clauses in consonance with the mandatory provisions of the Real Estate (Regulation and Development) Act 20161 for the protection of the home buyers. These clauses cannot be altered by any State/UT and must necessarily be a part of every agreement for sale.
Part B: Additional clauses based on individual needs and exigencies of each State/UT as permissible within the scheme of the 2016 Act. However, these clauses must not be contrary to or dilute in any manner the clauses in Part ‘A’
The development happened in the PIL filed by Ashwini Upadhyay seeking a model builder-buyer agreement. Earlier, the Supreme Court had observed that a model agreement was necessary to protect the interests of home buyers and had asked the Union to frame a model agreement after taking inputs from the States. Later, the Court asked the Union to scrutinize the rules framed by the States under RERA to ascertain if essential norms have been incorporated.
Thirteen States and two Union Territories have filed their responses and the following States did not submitted their responses: (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.
The Hon’ble Supreme Court directed the States to file their response within a period of four weeks, failing which the Principal Secretaries of the State Government in the Ministry of Urban Development/Affairs shall personally remain present before this Court on the next date of hearing to explain as to why they should not be proceeded with under the coercive arm of law.
Further, the Court listed the proceedings for the 28-November 2022.
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