'Right to housing is a part of the fundamental right to life', Supreme Court expressed the pain of the middle class:

News Topical, Digital Desk : The Supreme Court has understood the pain of thousands of flat buyers who are wandering around with the dream of owning a house after booking a flat and house by investing their life's hard-earned money. The apex court has given an important decision on Friday, which will not only fulfill the dream of flat buyers but will also restore people's trust in real estate.

Right to housing is part of the fundamental right to life- Supreme Court

The Supreme Court has said that the right to housing is not just a contract-based right, but it is a part of the fundamental right to life under the Constitution. Therefore, it is giving such instructions so that the dream of the citizens of India to have a home is fulfilled. This dream of theirs does not become a lifelong nightmare.

The Supreme Court has expressed the pain of the middle class and said that after spending a lifetime's earnings on a house, he bears a double burden. On one hand, he pays the EMI of the house and on the other hand, he pays rent. He just wants to fulfill his dream of a house, which remains an unfinished building.

Developers exploit home buyers

He further said that the worry of not getting a house despite paying money has a bad effect on his health and dignity. It is the constitutional duty of the government to create such a strict mechanism in which no developer is allowed to exploit or cheat the home buyer.

The bench gave this order to the central government

A bench of Justices JB Pardiwala and R Mahadevan asked the central government to consider setting up a revival fund under the National Asset Reconstruction Company Limited (NARCL) to fund distressed real estate projects undergoing bankruptcy proceedings. Or expand the Special Window for Affordable and Mid Income Housing (SWAMIH) fund. This will prevent the closure of projects that have potential and protect the interests of home buyers.

However, the court has cautioned that a huge amount of funds will be involved in this, which is public money. In such a situation, every rupee should be spent strictly on the same purpose. To ensure that its misuse is not prevented, the court has ordered the CAG to conduct a comprehensive audit from time to time and make its report public. It said that this is not just a matter of houses or apartments. The banking sector, related industries and employment of a large population are also at stake in this.

Government bound to protect interests of home buyers: Supreme Court

The Supreme Court has said that the government is constitutionally bound to protect the interests of home buyers and the overall economy. The court has given several guidelines to protect the interests of home buyers and ensure that they get a house. Along with this, every responsible authority has been asked to be strengthened and infrastructural resources increased.

The court has said that the vacancies in NCLT and NCLAT should be filled on a war footing. For this, the services of retired judges can be taken on ad hoc basis. The central government will file a compliance report in three months on the measures taken in this regard.

RERA will conduct a thorough investigation before approving any project

The court has said that a committee will be formed within three months under the chairmanship of a retired High Court judge. This committee will have representatives from the Law Ministry, Housing Ministry, experts from the real estate sector, Finance and IBC.

It will also have representatives from IIM, NITI Aayog and the industry. This committee will suggest possible reforms to ensure cleanliness in the real estate sector as well as to restore trust.

The court has ordered that the state governments should ensure that the RERA authority has adequate staff and infrastructure and experts. Every RERA will always have a legal expert or consumer advocate who has expertise in real estate. RERA will thoroughly investigate any project before approving it.

Real estate is the second largest sector

The court has said that failure to do so would be unjust. This would be a mistake which would not be forgiven by law. Since real estate is the second largest sector in IBC proceedings, the Insolvency and Bankruptcy Board of India (IBBI) should form a council in consultation with the RERA authority which should set special guidelines for bankruptcy proceedings in real estate. IBBI will create a mechanism in which if a unit of a project is ready, then possession should be given to the allottees who want to take possession.

There should also be protection from conflict of interests

The court has also said that the rules will ensure that there is meaningful representation of allottees in the CoC, which will also protect against conflict of interest. The court has said that when an application is filed in NCLT under Section 7, it will be recorded prima facie whether the applicant is a genuine home buyer or a purely profit-making investor.

The most important direction given by the court

The most important direction given by the court is that in any new residential project of real estate, the allottee or buyer of the transaction will have to register it with the local revenue authority by paying 20 percent of the property price. In this regard, the court has given more instructions to protect the interests of senior citizens and genuine buyers.

In its decision, the court has also explained the difference between genuine buyers and those who invest for the sole purpose of profit. The court has given this decision while simultaneously disposing of four appeals filed against the orders of NCLAT. The court has upheld the order of NCLAT to consider two appellants as investors for profit.