Supreme Court verdict on real estate Act benefits homebuyers
The Delhi Real Estate Appellate Tribunal has stayed all the construction activities, including residential and commercial activities, in the national capital that are undertaken without registration of the Real Estate Regulatory Authority (RERA) till the project is registered with the authority.
The Tribunal also directed the concerned Commissioner as well as Executive Engineer of each of the Municipal Corporations, DDA, NDMC and the Commissioner of Police through concerned SHO of the local Police Station of each area to ensure that with immediate effect no further construction activity is continued in the absence of RERA registration.
Which projects are covered when the law is applied retrospectively?
Under Chapter II of the Act, registration of real estate projects was mandatory. It mandated that for projects that were ongoing on the date of commencement of the Act, specifically projects for which the completion certificate had not been issued, the promoters shall be under obligation to make an application to the authority for registration of the project.
“From the scheme of the Act 2016, its application is retroactive in character and it can safely be observed that the projects already completed or to which the completion certificate has been granted are not under its fold and therefore, vested or accrued rights, if any, in no manner are affected. At the same time, it will apply after getting the ongoing projects and future projects registered under Section 3 to prospectively follow the mandate of the Act 2016,” the Supreme Court Bench of Justices Uday Umesh Lalit, Ajay Rastogi and Aniruddha Bose ruled.
Projects that received their completion certificate prior to enactment of RERA, however, are not covered by the law.
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