SC Urges Centre to Enforce Rules Protecting Homebuyers from Exploitation

Quick Summary:

• The Supreme Court has directed the government to intervene in stalled housing projects, emphasizing that the right to housing is a fundamental right linked to the right to life.
• Suggested measures include establishing a revival fund under NARCL or expanding the SWAMIH Fund for financial assistance and bridge financing for stressed projects undergoing insolvency proceedings.
• A strict framework must be enforced by the state to prevent fraudulent practices by developers and ensure timely project completion.
• Recommended public-private partnerships or corporate bodies to identify, take over, and complete stalled housing projects.
• The bench highlighted how many homebuyers are burdened with EMIs and rent simultaneously due to unfinished or abandoned projects despite substantial payments.
• Calls for performance audits by CAG on funds allocated under the SWAMIH initiative as part of transparency safeguards.

Indian Opinion Analysis:

The Supreme Court’s emphasis on recognizing housing as integral to fundamental rights signals a notable shift in judicial advocacy for citizen welfare. while highlighting real estate irregularities, including project delays and insolvencies affecting lakhs of middle-class homebuyers, these directives may push policymakers toward stronger regulatory frameworks. Measures like revival funds will require careful execution with accountability mechanisms such as CAG audits. Additionally, encouraging stricter enforcement against fraud across developers may reduce speculative practices inflating real estate costs. The proposal for public-private partnerships provides actionable solutions but will necessitate close coordination between government agencies and private entities. this ruling underscores both immediate action from authorities and sustainable reforms in India’s urban housing policies.Read More