News: SC asks states to respond to queries of centre on implementation of RERA rules-18-04-2022
A bench of Justices DY Chandrachud and Surya Kant said that in March 2022 the Centre has written to all the States seeking certain information with regard to the agreement of sales rules notified under the RERA Act and their compliance but only five States have so far responded to it.
NEW DELHI: The Supreme Court on Monday asked Chief Secretaries of all the States to respond to the queries raised by the Centre on implementation of Real Estate (Regulation and Development) (RERA) Act, 2016 rules in their jurisdiction.
A bench of Justices DY Chandrachud and Surya Kant said that in March 2022 the Centre has written to all the States seeking certain information with regard to the agreement of sales rules notified under the RERA Act and their compliance but only five States have so far responded to it.
"In order to facilitate the exercise carried out by the Union of India, we direct all the chief secretaries to respond to the queries raised with RERA rules on or before May 15", the bench said.
It added that Additional Solicitor General Aishwarya Bhati and amicus curiae Devashish Bharuka will file a status report after receiving all the relevant information from the States.
The bench posted the matter for further hearing in the third week of July.
At the outset, the bench asked amicus about the status of the report to which he said that they have received some responses from the state governments and some deviations were found and he has asked for the reasons for such deviations.
He said that so far only five states have responded to the queries raised by the Centre with regard to the RERA rules.
The bench said it is posting the matter for further hearing after the summer vacation and till then more responses from States will come.
It said that once the report is prepared it will direct the Union Ministry of Housing and Urban Affairs to upload it on its website.
Bhati assured that it will be done.
On February 14, the top court directed the Centre to examine whether the rules framed by various States under RERA Act are in conformity and subserve the interest of home buyers.
It had given three months to the Centre to examine if there are any deviations in the rules framed by the states to the rules framed by the Centre in 2016 and to place the report by the first week of May 2022.
It had appointed advocate Devashish Bharuka as amicus curiae in the plea by advocate Ashwini Upadhyay seeking implementation of a builder-buyer agreement to safeguard the interest of home buyers and requested him to assist the Union Ministry of Housing and Urban Affairs to examine the rules framed by the states.
The top court noted that the central government shared the draft 'agreement for sale' in 2016 after the enactment of RERA with all the states and Union Territories and currently West Bengal, Jammu, and Kashmir, and some north-eastern states are yet to notify the rules.
Bhati had earlier said that the rules have been framed by the central government and many states have notified them of some changes keeping in mind the local conditions.
The top court had said that there may be some local conditions that need to be taken care of by the states but most of the rules should be in compliance with the Centre's draft rules of 2016.
On January 17, the top court emphasised the need for a model builder-buyer agreement to safeguard the interest of middle-class home buyers and asked the Centre to consider framing uniform rules under the provisions of RERA.
The top court had said that it wants that instead of leaving it to the States, the Centre makes the model builder-buyer agreement and model agent-buyer agreement which shall be applicable for the whole of the country.
It had said that the whole purpose of the present PIL is that there should be a model builder-buyer agreement which will be formulated by the central advisory council so that there is some uniformity in the basic terms and conditions and the flat buyers are not exploited.
The Centre in its affidavit said, "There is a robust regulatory mechanism, and a draft 'agreement for sale has already been prescribed under the provisions of RERA (Real Estate Regulatory Authority), which seeks to balance the rights and interest of home buyers and promoters in an accountable and transparent manner".
It has said that according to section 84 of RERA, the appropriate government that is the state government save in the instances involving its application in the territory of union territories has to notify rules for carrying out the provisions of this Act.
The affidavit has said that RERA mandates for registration of projects before advertising, marketing, booking, selling and the law ensures the timely delivery of real estate projects, and the entire fund flow is also subject to strict monitoring by the regulator to avoid diversion of funds, which will also secure the interest of home buyers.
On October 4 last year, the top court had said it was important for the country to have a model builder-buyer agreement in the real estate sector for consumer protection because developers try to put numerous clauses in it, which common people may not be aware of. Upadhyay had said that there should be a model agreement prepared by the Centre as some states have it and some don't, and there is no uniformity in those agreements.
The PIL has sought direction to the Centre to frame model pacts for builders and agent buyers to protect customers and bring transparency in the realty sector in line with the RERA Act, 2016.
