The Supreme Court said in a judgment, the unilateral conditions imposed by developers on home buyers are unfamiliar trade practices.
The Supreme Court has termed the One-Sided Agreement of the Unfair Trade Practice as an Unfair Trade Practice under the Consumer Protection Act. Also, it has been said that builders cannot force home buyers to accept unilateral terms.
- January 13, 2021, 10:31 PM IST
12 percent interest to be paid for non-compliance
A bench of Supreme Court Justices DY Chandrachud, Indu Malhotra and Indira Banerjee said that if the developer did not return the money to the buyer with 9% interest within four weeks, he would have to return the entire amount with 12% interest. According to the report of India Legal Live, the entire amount in this case is Rs 1.60 crore. Explain that the developer had filed a petition in the Supreme Court against the order of the National Consumer Commission. The court was considering whether the 42-month period for grant of possession should be considered from the day of approval of the building plan or from the day of receipt of the fire safety certificate.
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The apex court was considering in the present case whether the terms of the builder buyer agreement are unilateral and in the interest of the builder. Also, it was to be decided whether a buyer can go to the Consumer Court despite RERA. In this case the builder offered the home buyer to take the house to another project. On this, the Supreme Court said, ‘It is the will of the buyer whether he agrees to the builder or not. He cannot be forced to take home elsewhere. It was termed wrong under the Consumer Law 1986 and put such a condition in the agreement against Section 2 (1) (R) of the Consumer Protection Act. The court also said that the buyer can knock the door of consumer court along with RERA.