The Supreme Court has directed all the States to appoint regulators and appellate tribunal permanently that too within three months. The order has come after finding out non-implementation of the provisions prescribed under the Real Estate (Regulation and Development) Act (RERA).
The Narendra Modi-led NDA Government had introduced RERA in 2016 to make working in the Indian real estate sector transparent. According to the Act, it is compulsory for all the residential and commercial projects planned on more than 500 sq meters to be registered with the respective regulatory authority.
It has been found that several states all over the country have not implemented the RERA clause and this will affect reversely in the interests of property buyers.
The Supreme Court has passed strict order to appoint the respective officials as soon as possible.
Apart from this, the court ordered to uphold the latest amendment to Insolvency and Bankruptcy Code (IBC) that give homebuyers a status of financial creditors.
This judgment will help the real estate sector overall, however, some developers have expressed their unhappiness over the decision.
In July, the Government has sanctioned seven amendments to the insolvency law to fill the gaps in the corporate insolvency resolution guideline while maximizing value from the resolution process, an official release said.
As per the sources, this amended Code would also offer more clarity on the permissibility of corporate restructuring schemes, rights and duties of authorized representatives of voters, manner of distribution of amounts amongst financial and operational creditors and applicability of the resolution plan on all statutory authorities, they added.