SC asks Bombay HC to decide on cases challenging RERA
New Delhi, Sep 4 (IANS) The Supreme Court on Monday asked the Bombay High Court to decide on challenge to provisions of the new real estate law which mandates builders to register their ongoing projects with the Real Estate Regulatory Authority (RERA).
The bench of Justice Arun Mishra and Justice Mohan M. Shanta nagoud ar asked the other high courts where similar challenges to the provisions of the Real Estate (Regulation and Development) Act, 2016, were pending with them to await the outcome of the hearing by the Bombay High Court. It gave the Bombay high court two months' time to decide on the petition by real estate builder and any similar matter pending before it.
The court order cameo na petition by the central government seeking the transfer of 20 cases challenging the provisions of the 2016 law pending before various high courts to itself.
At the outset of the hearing, as Attorney G en eral KKVenug opal addressed the court, Justice Mis hr a asked why shouldn' t they ask one of the high courts to hear all the petition sand decide on the matter instead of making every one to travel to Delhi.
The bench considered the option of asking Bombay, Karnataka and Delhi High Courts but eventually it was agreed to give it to the Bombay High Court which was moved first challenging the act
As the court asked what was the objective of the provision of the law regulating the real estate that have been challenged by the builders and developers, the Attorney General said that builders were mis-u ti li sing the money taken from the home buyers and then leaving the projects half way. On being asked what was the challenge before the High Courts, Venugopal said is their resistance to the provision mandating the registration of ongoing projects with the RERA.
The Central government had told the apex court that the law regulating the real estate was aimed to curb delays in project completion, diversion of funds collected from buyers, one-sided contracts due to power a symmetry, reneging on contractual commitments by both the developers and buyers, and the constraints in financing and investment options available to the sector thus affecting its long term growth.
It said prior to this law, the operations were opaque with buyers of residential units or commercial spaces were unable to pro cure complete information or enforce accountability against the builders and developers.
The HCs have been moved by various promoters - builders or developers, promoters association and co-operative societies developing real estate projects for the sale of residential flats, rowhouses, and the owners of bungalows and plots, challenged various provisions of the Act