Deciphering the Supreme Court’s Clarion Call: The Urgency of Implementing RERA Nationwide – A Comprehensive Analysis

Introduction:

In a recent development, the Supreme Court has urged the West Bengal government to expedite the appointment of the chairperson of the appellate tribunal under the Real Estate (Regulation and Development) Act, 2016 (RERA). This directive comes as part of the court’s vigilant monitoring of its order, directing states and union territories to appoint permanent adjudicating officers and establish regulatory authorities and appellate tribunals under RERA. The matter is scheduled for another hearing in April 2024, highlighting the ongoing efforts to streamline the implementation of RERA across the country.

Background and Legal Context:

The roots of this directive trace back to August 2019 when the Supreme Court dismissed petitions from builders, developers, and real estate companies challenging the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018. This amendment, among other things, treated homebuyers as financial creditors, aligning them with other stakeholders. In response, the court directed the immediate establishment of permanent RERA regulatory authorities and appellate tribunals, emphasizing the need for expeditious compliance.

In subsequent hearings, the court sought responses from various states and union territories regarding the establishment of regulatory authorities and appellate tribunals. Notably, states such as Meghalaya, Sikkim, and the union territory of Ladakh faced scrutiny for their perceived failure to meet regulatory obligations. The court’s proactive approach reflects its commitment to ensuring that RERA, Consumer Protection Act, 1986, and the Insolvency and Bankruptcy Code work in harmony to protect the rights of homebuyers.

State Responses and Challenges:

During the proceedings, Meghalaya’s unique land tenure system was cited as a reason for not having projects within RERA’s ambit. This led to a pointed inquiry by Justice Khanna, highlighting the need for clarity on the applicability of RERA in diverse regional contexts. Other states, including Arunachal Pradesh, Mizoram, and West Bengal, were also called upon to explain their progress in establishing real estate appellate tribunals.

West Bengal, while having set up an appellate tribunal, is currently in the process of appointing its chairperson. The court, recognizing the importance of this step, impelled the state government to complete the task promptly. Meanwhile, Nagaland, the only state yet to notify rules under RERA, clarified its legislative approach, promising recommendations to the legislative assembly.

Court’s Pronouncement and Future Expectations:

The Supreme Court, in its recent pronouncement, has mandated an up-to-date status report to be filed at least ten days before the next hearing in April 2024. The court expressed hope that by then, the State of West Bengal would have appointed the appellate tribunal chairperson, signalling the urgency attached to the effective implementation of RERA.

Conclusion:

The ongoing legal saga surrounding RERA highlights the complexities involved in ensuring uniform implementation across diverse states and union territories. The Supreme Court’s unwavering commitment to the protection of homebuyers’ rights underscores the need for comprehensive and expeditious compliance with RERA regulations. As the matter continues to unfold, stakeholders in the real estate sector and homebuyers alike await further clarity on the regulatory landscape.

This case, titled “Pioneer Urban Land and Infrastructure Limited & Anr. v. Union of India & Ors.,”[1] stands as a pivotal legal milestone in the ongoing efforts to streamline real estate regulations in India. The coming months will undoubtedly bring forth new developments and insights into the evolving legal landscape of the real estate sector.

[1] Pioneer Urban Land and Infrastructure Limited & Anr. v. Union of India & Ors (2019).