The Ministry of Housing and Urban Poverty Alleviation (MHUPA) recently filed a petition in the Supreme Court requesting to transfer all the cases against the RERA pending in different courts to the Delhi High Court.
According to a statement by an official from the housing department, most of the petitions are against the provision of the RERA which mandates the developers to register their ongoing projects with the authority. Whereas some petitions are against the Central government’s decision to implement a land rule that is a state-specific law. Transferring all the cases to the Delhi High court will save time and will ease the process of adjudication, he added.
Agreeing to perceive the Central Government’s petition, the bench of the Supreme Court comprising Justice Amitava Roy and Justice A. M. Khanwilkar has fixed September 4 as the date of hearing.
The Real Estate (Regulation & Development) Act was implemented by the Central government on 1st May 2016. The motive of the RERA is to infuse transparency and regulate the real estate sector of India.
It mandates the developers to publish their project details on the RERA website of the state where the project is developed and deposit 70% of the funds received from the buyers in an escrow account.
As per the earlier news , many real estate developers alleged RERA as a retrospective reform and challenged the validity of the Act in the high court of various states.
According to the developers, the projects were started as per the old laws when the RERA was not in the scene. Now, the government is trying to place all the ongoing projects under the ambit of the RERA. This action by the government will have retrospective effect on the real estate sector. Recently, the central government also quashed the demand of developers to exclude all the ongoing projects from the purview of the RERA.