The Bombay High Court upheld the validity of the Real Estate (Regulation and Development) Act (RERA), saying its objective is to develop the real estate sector.
A bench of Justices Naresh Patil and Rajesh Ketkar pronounced its judgement on a bunch of petitions filed by real estate developers and individual plot owners, all challenging the constitutional validity of the Act that was brought into effect earlier this year.
The Act, among other things, mandates that all developers register themselves under a common regulatory authority.
It also allows buyers to claim compensation for delay in possession, and envisages cancellation of a developer's registration in case the developer fails to complete the project within stipulated deadline.
The petitions claimed that the Act, and the constitution of a state-level authority for its implementation, were arbitrary, and therefore unconstitutional.
The bench, headed by Justice Patil, however, allowed a significant leeway for developers in today's judgement by permitting the state-level RERA authority and the Appellate Tribunal to consider delays on a case-to-case basis, and not to cancel projects or developers' registration in cases where the delay was caused due to "exceptional and compelling circumstances." [Source: PTI]
Tagged: Bombay High Court
Real Estate Act