Giving a sigh of relief to the real estate buyers, the Bombay high court gave its judgment on the petition filed by real estate developers, challenging the constitutional validity of the Real Estate (Regulation & Development) Act (RERA).
According to the petitioners, RERA is unconstitutional as its state-wise implementation and appointing state-level authority is arbitrary. They also challenged the Section 3 of the RERA which mandates developers to register their new and ongoing projects for which the completion certificates has been issued by May.
A bench of justices consisting Rajesh Ketkar and Naresh Patil gave different but concurrent findings and stated that “RERA needs to be closely monitored in years to come. RERA is not a law relating to only regulatory concerns but its object is to develop realty sector particularly incomplete projects.”
The court also provided a substantial leeway to extend the project completion time by permitting the state-level RERA authority and the Appellate Tribunal to consider delays on a case-to-case basis. It also asked the authority not to cancel projects or developers’ registration in cases where the delay was caused due to “exceptional and compelling circumstances.”
The Bombay High Court has got the responsibility to hear pleas regarding RERA on the direction of the Supreme Court.
Click Here to view the list of RERA registered projects