DB Realty Group, Real Gem Buildtech, MIG (Bandra) Realtors and Neelkamal Realtors are among the builders who moved to high court
In a relief to home buyers, the Bombay High Court on Wednesday upheld the constitutional validity of the Real Estate (Regulation and Development) act, 2016 and the authority formed under it.
A division bench of Justice Naresh Patil and Justice Rajesh Ketkar in their over 330- page judgement upheld various provisions of the act and the Constitution of the Maharashtra RERA authority. It said “RERA is not a law relating to only regulating concerns of the promoters but it’s object is to develop the real estate sector, particularly the incomplete projects, across the country. The problems are enormous and it’s time to take a step forward to fulfill the dream of the 'Father of the Nation. To wipe out tears from every eye.”
The court passed the order while deciding on a bunch of petitions filed by developers and plot owners challenging the validity of several sections of the RERA act. It said “Having a careful scrutiny of the relevant provisions we have harmoniously construed the provisions, and hold them to be constitution, valid and legal.”
However, the court partially struck down section 46 (1) (b), which relates to qualification of appointment of judicial members to the authority. The court has directed that the two member bench of the tribunal should always consist a judicial member and majority of the members shall always be judicial members, instead of bureaucrats, as is the formation now.
Across, a few states, several builders moved high courts to question the Act, especially provisions saying it applies to projects not completed by May 31, 2017 and its "draconian" penal provisions with
possible imprisonment for breaches.
DB Realty Group, Real Gem Buildtech, MIG (Bandra) Realtors and Neelkamal Realtors moved the HC among others.
The RERA came into effect on May 1, a year after it was passed by both Houses of Parliament. The Supreme Court had in September on an application filed by the Union Government seeking to club all petitions filed across country had asked the Bombay High Court to decide first on the petitions, in a period of two months.
As per the Act, developers, projects and agents had till July 31 to mandatorily register their projects with the Authority. Any unregistered project would be deemed to be unauthorised by the regulator.
Under RERA, each state and union territory will have its own Regulatory Authority (RA) which will frame regulations and rules as per the Act.
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 "Good news for home buyers! Real estate act RERA is not illegal, says Bombay HC")
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