Supreme Court preserves applications of RERA to Real Estate Projects

Nishka Srinivas Veluvali –

Published On: November 12, 2021 at 19:23 IST

On Friday, the Supreme Court advocated the retroactive applications of the Real Estate (Regulation and Development) Act, 2016 to the advancing real estate projects.

Justice Uday Umesh Lalit, Ajay Rastogi and Aniruddha Bose Bench of Supreme Court noticed that RERA Act does not imply to the projects that are already completed or the projects which acquired completion Certificate.

The Bench rejected the Arguments put forth by the Developers stating that the first Proviso of Section 3(1) of the Act violates the Articles 14 and 19(1)(g) of the Indian Constitution.

Section 3(1) of RERA Act states that No developer shall advertise, market, book, sell or offer for sale or invite people to purchase in any manner, any plot, apartment/ building, as the case may be in any real estate project without registering the real estate project with the Real Estate Regulatory Authority.

Taking note of the Statutory Provisions of the RERA, the Court noticed that all the “ongoing projects” that start off prior the Act and with regard to the same the completion certificate under the Act, that stated:  

It manifests that the legislative intent is to make the Act applicable not only to the projects which were yet to commence after the Act became operational but also bring under  its fold the ongoing projects and to protect from its inception the Inter Se Rights of the stake holders, including allottees, promoters and real estate agents while imposing certain duties and responsibilities in each of the and to regulate, administer and supervise that unregulated real estate sector within the fold of the real estate authority.”

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