New Delhi, Aug 30 (IANS) The Supreme Court will hear on Monday a plea by the Central government seeking the transfer of 20 cases pending before various High Courts across the country challenging the Real Estate (Regulation and Development) Act, 2016.
The bench headed by Chief Justice Dipak Misra agreed to hear the Centre’s plea seeking the transfer of 20 cases after Additional Solicitor General Maninder Singh mentioned the matter.
The Central government has also sought the transfer of any other case that might be filed in the future challenging the constitutional validity of the law regulating the real estate till top court decides the transfer petition by the Centre.
Seeking the transfer of petitions challenging the 2016 act, which provides for the institution of a uniform regulatory mechanism for speedy adjudication of disputes in the real estate sector, the Centre’s petition said that it would involve multiplicity of litigations and could result in “inconsistent decision” by different high courts.
The high court have been moved by various promoters – builders or developers, promoters association and co-operative societies developing real estate projects for the sale of residential flats, row-houses, and the owners of bungalows and plots.
The petitioners before various high courts have challenged the provisions of the Act that mandates registration of real estate projects with the Real Estate Regulatory Authority (RERA).
The law provides that at the time of the registration of the project with RERA, the developer will have to submit the authenticated copies of the approvals and commencement certificate from the competent authority, too have been contested before the High Courts.
The challenges also include the requirement to submit the sanctioned plan, layout plan and specifications of the proposed project.
The petitioners before the high courts have also challenged the provision that says that in a multi-phase project, each phase would be treated as a stand-alone project.
Also challenging the competence of the parliament to enact the law, they have contended that the subject matter falls under the list of State subjects.
The petitioners before the various high courts have broadly challenged Section 3(1), Section 3(2)(a), explanation to Section 3, Section 4(2)(I)(C), Section 4(2)(I)(D), Section 5(3) and the first proviso to Section 6 of the Act.
The Central government has said in its petition that prior to this law, the operations of real estate sector were opaque with buyers of residential units or commercial spaces were unable to procure complete information or enforce accountability against the builders and developers.
The law regulating the real estate, the Centre’s petition says, was aimed to curb delays in project completion, diversion of funds collected from buyers, one-sided contracts due to power asymmetry, reneging on contractual commitments by both the developers and buyers, and the constraints in financing and investment options available to the sector thus affecting its long term growth.
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