Flagging the plight of middle-class citizens whose “dream homes” remain unfinished despite years of investment, the Supreme Court has asked the Centre to explore creating a revival fund to provide bridge financing for stressed real estate projects. The Division Bench of Justice J B Pardiwala and Justice R Mahadevan observed that the State has a constitutional duty to ensure no developer exploits homebuyers and that timely project completion forms the cornerstone of urban policy.
The Court suggested that the government could consider setting up a body corporate, similar to the National Asset Reconstruction Company Ltd (NARCL), or expand the SWAMIH Fund, to take over and complete stalled projects under the Insolvency and Bankruptcy Code, 2016. Unsold inventory from such projects could be used for affordable housing schemes or government quarters, addressing both housing shortages and the revival of stressed projects.
Emphasizing the mental and financial toll on homebuyers, the Bench noted that many are forced to pay EMIs while renting elsewhere, and in some cases, construction has not even begun despite full payments. The Court stressed that RERA authorities must not be “toothless tigers” and should be equipped with adequate infrastructure, empowered tribunals, and effective enforcement mechanisms.
The Bench also issued directions to strengthen NCLT/NCLAT infrastructure, fill vacancies urgently, constitute dedicated IBC benches, and utilize retired judges on an ad hoc basis until permanent appointments are made. States were directed to ensure RERA authorities are properly staffed and funded, while a committee chaired by a retired High Court judge will recommend systemic reforms for restoring credibility to the real estate sector.
Highlighting the constitutional dimension, the Court observed that the right to housing is not just a contractual entitlement but part of the fundamental right to life under Article 21, and protecting genuine homebuyers is central to India’s urban and economic future.
Source Link
Picture Source :
