Twitter
Advertisement

RERA is constitutional, valid and legal, says Bombay High Court

Judgement said: RERA is not a law relating to only regulating concerns of the promoters, its object is to develop the real estate sector

Latest News
article-main
FacebookTwitterWhatsappLinkedin

There's good news for home buyers as the Bombay High Court on Wednesday upheld the constitutional validity of the Real Estate (Regulation and Development) act, 2016 (RERA)and the authority formed under it.

A division bench of Justice Naresh Patil and Justice Rajesh Ketkar, in their 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 constitutional, 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.

Among others, DB Realty Group, Real Gem Buildtech, MIG (Bandra) Realtors and Neelkamal Realtors had moved the high court.

RERA came into effect on May 1, a year after both houses of the parliament passed it. Supreme Court had in September, on a Union government application, sought to club all petitions filed across the country. It also further urged Bombay High Court to decide first on the petitions, within a period of two months.

As per the Act, developers, projects and agents had time till July 31 to compulsorily 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 rules and regulations as per the Act.

THE JUDGEMENT

  • Division bench of Justices Patil and Ketkar upheld various provisions of the Act
     
  • Judgement said: RERA is not a law relating to only regulating concerns of the promoters, its object is to develop the real estate sector
     
  • It added: The problems are enormous and it’s time to fulfill Gandhi’s dream — Wipe out tears from every eye.
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement