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Supreme Court's Amrapali ruling raises hopes of homebuyers in Mumbai

The judgment of the apex court is expected to have a far-reaching impact on the housing market in the Mumbai Metropolitan Region.

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The Supreme Court's order cancelling the registration of all companies of the Amrapali Group under the Real Estate (Regulation and Development) Act could give the much-needed respite to thousands of homebuyers who are suffering due to stalled projects.

The judgment of the apex court is expected to have a far-reaching impact on the housing market in the Mumbai Metropolitan Region. Since their launch in 2013 or before, nearly 2,10,000 apartments in projects worth Rs 2,34,000 crore have been delayed in the MMR.

Property buyers hope that elimination of weak links in the value chain will ultimately pave the way for financially sound and ethical developers to flourish. Tuesday's order comes at a time when stuck/stalled projects have become rampant.

The SC Order

 Homebuyers had petitioned the SC to take the possession of nearly 42,000 flats of the Amrapali group
 SC struck down RERA registration of the group and lease of properties granted to it by Noida & Greater Noida authorities

Maharashtra Societies Welfare Association president Ramesh Prabhu said RERA authorities will now be able to take proactive steps by citing the SC order and terminate existing developers who have failed to complete their projects on time. "At present, there is a lot of confusion whether the stuck projects can be taken over by the regulator and handed over to a new developer or the society. Now there is clarity.''

Anuj Puri, chairman of ANAROCK Property Consultants, however, said developers in MMR are not always on the wrong side of the law. "Projects can get stuck for a variety of reasons, some beyond a developer's control. So it would be appropriate to set certain criteria under which, if not fulfilled, aggrieved homebuyers can reasonably expect similar interventions. Since bureaucratic delays do not constitute wilful default, the courts would have to make specific ground rules about which projects qualify for judicial intervention,'' he said.

Builders Association of India spokesman Anand Gupta said a lot of stalled projects in MMR can be completed if they are handed over to new developers or a government agency. ''Projects are stuck due to many reasons including financial crunch. The apex court order will benefit homebuyers with the stuck projects going to a new developer.''

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