The much-awaited judgement by the Bombay High Court (HC) pertaining to the validity of the Real Estate (Regulation and Development) Act has been announced. The Bombay High Court, in a judgement has upheld the constitutional validity of RERA which was challenged by several developers.
Last month, the HC finished hearing petitions filed by developers, challenging the constitutional validity of several key provisions of RERA which came into effect in May this year. By October, as many as 13,000 ongoing projects have been registered under MahaRERA.
While a bench of Justices, Naresh Patil and RG Ketkar rejected petitions filed by these builders, two pleas were given permission. The court has authorised the regulatory authority to provide extension for project completion to builders in unusual instances on a case by case basis. However, the court rejected a provision that allowed the appointment of bureaucrats as members of an appellate tribunal stating that in the constitution of a tribunal, majority of members must be judges or judicial officers.
The Centre had previously asserted to justify and explain why stringent provisions under RERA are valid and essential in restraining rogue developers. The Supreme Court, however, refused the Centre’s appeal to transfer the various challenges filed across different states to itself. Further, it had assigned the task to the Bombay HC to hear the constitutionality issue of the central Act.