Competition Commission of India Panel: Suggest Changes to Buyer - Seller Agreement


 The Competition Commission of India (CCI) is understood to have suggested certain modifications in the Buyers-Sellers Agreements to bring down the monopoly of developers / promoters / builders

The move comes following FAOA (Federation of Apartment Owners Association) approaching the Competition Commission of India to look into the Buyer - Seller Agreement, which they said was skewed towards developers. The newly formed Association has been formed to provide information about rules and regulation against exploitation by developers /  promoters / builders

Complete Violation of the Agreement.!


Mr. Gautam Gulati, Senior Vice-President, FAOA said, “There is complete violation of the agreement by most developers, as the agreements are one sided. We had approached CCI to probe the dominance of developers”

Mr. Amit Jain, a member of the FAOA said, '' The lack of a regulator has allowed malpractices to proliferate, with consumers facing the brunt of questionable land acquisitions, allotments, misuse of buyers money & delayed projects. FAOA said it will try to work in association with real estate bodies such as CREDAI & NAREDCO, among others."

Inidan real estate experts pointed out that consumers (home / plot buyers) have been seeking correction in the clause, where a buyer is expected to pay up to 18% interest on defaulting on the instalment. However, in case of a delay in delivery by the developer /  /  promoters / builders , it pays only 1 to 2% as fine (penalty) charge.

CCI’s view on modification in the agreement comes in the wake of the anti-monopoly watchdog being flooded with complaints against builders /promoters and developers.

Most complaints include one-sided agreements with flat and house buyers, cheating & delayed projects among others.

Src : The Hindu
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