Inspect state RERA rules for essential norms: SC to Centre
The order came while hearing a set of petitions filed by individual homebuyers demanding a model builder-buyer agreement (BBA) and agent-buyer agreement (ABA).
The Supreme Court on Monday directed the union government to undertake a comprehensive study of rules notified by states under the Real Estate (Regulation and Development) Act 2016 (RERA) within two months and submit a report on any provision that could harm the interest of homebuyers.
The order came while hearing a set of petitions filed by individual homebuyers demanding a model builder-buyer agreement (BBA) and agent-buyer agreement (ABA).
The Centre was represented in the matter by additional solicitor general (ASG) Aishwarya Bhati who said that along with the enactment of RERA, the government notified RERA General Rules and RERA Agreement for Sale Rules in 2016 keeping in mind the interest of those union territories having no legislature. The same year, the Centre wrote to states and union territories to notify state-specific rules under the 2016 Act. Bhati informed the Court that as on January 31, few states had not notified these rules, and named Bengal, Uttarakhand, Nagaland, Manipur and Meghalaya.
The bench of justices Dhananjaya Y Chandrachud and Surya Kant said, “At this stage it is necessary for the Court to be apprised whether the rules framed by states contain the essential norms which have been adopted by the Centre under the 2016 Rules or whether there is any deviation that would not subserve the interest of the homebuyers.” As this exercise involves a comprehensive study of the rules framed under the state-specific RERA legislation, the bench directed the ministry of housing and urban poverty alleviation to undertake this exercise by scrutinizing each state rule and submit a report to the Court in two months.
Additionally, the Court also appointed advocate Devashish Bharuka as amicus curiae to assist in the preparation of the report with full assistance from the Centre.
One of the petitioners, represented by senior advocate Menaka Guruswamy informed the Court that the Centre has maintained a consistent stand that states have to frame rules due to which homebuyers across states suffer. She emphasized the need for some basic essential norms from which the states cannot depart.
ASG Bhati pointed out that an analysis of the rules put in place in Maharashtra and Haryana shows some additions to the 2016 ruled that are specifics to the states. For instance, Maharashtra has added slum development/re-development in its rules, she added.
The bench observed, “So long as the rules are for protection of buyer or consumer, there is no difficulty. It must not be oppressive.”
One of the petitions filed by advocate Ashwini Kumar Upadhyay, said, “The petition is seeking direction to all states to enforce model BBA and model ABA to avoid mental, physical and financial injury, ensure accountability, develop mechanism to weed out criminal conspiracy for wrongful gain, criminal breach of trust, and dishonest misappropriation of buyers’ money by promoters, builders and agents.”
The bench after passing its order told ASG Bhati, “Wherever you (Centre) find provisions in the state rules which are in conflict or against the interest of flat buyers, you can point it in the report. Broadly, the rules prepared by Centre will take care of the issue.” The matter has been posted next in May.
