Supreme Court Concerned Over Rising Real Estate Disputes in Delhi and Mumbai
NEW DELHI: The Supreme Court voiced its concern on Friday over the rising number of cases of homebuyers in Delhi-NCR and re-development projects in Mumbai, saying it is affecting the reputation of real estate developers.
A bench of Justices J B Pardiwala and P B Varale, which was hearing a dispute regarding the re-development of a Mumbai housing society, said the magnitude of real estate cases is severe in Delhi-NCR and Mumbai.
This problem of real estate is very severe in these two places. In Delhi-NCR, there are lakhs and lakhs of homebuyers who are affected by housing projects. In Mumbai, it is the case with the re-development projects. Nowhere else does this happen. In Gujarat, for instance, you will not find a single case where there are disputes with regard to real estate projects. This affects the reputation of real estate developers, the bench said.
Justice Pardiwala asked the lawyers appearing in the matter on behalf of different builders to ponder over the issue.
The top court is currently seized of several real estate disputes related to Unitech, Amrapali Group, Jaypee, and Supertech Group, where thousands of homebuyers are contesting delayed possession of their flats by the developers.
The increasing number of disputes in these regions reflects a broader issue in the real estate sector. Homebuyers in Delhi-NCR and Mumbai are often left in the lurch due to delays, project cancellations, and financial mismanagement by developers. This not only affects individual buyers but also undermines the trust in the real estate market, leading to a negative impact on the overall economy.
The Supreme Court's intervention highlights the need for stricter regulations and better enforcement mechanisms to protect the interests of homebuyers. The bench emphasized the importance of addressing these issues to restore faith in the real estate sector and ensure the sustainable growth of the industry.
In response to the court's concerns, real estate developers and industry associations are expected to take proactive measures to improve transparency and accountability. This includes adhering to timelines, providing regular updates to homebuyers, and ensuring financial transparency.
The situation in other regions, such as Gujarat, where real estate disputes are less common, serves as a benchmark for what can be achieved with better governance and regulatory oversight. The Supreme Court's call for reflection and action is a crucial step towards resolving the pressing issues in the real estate sector and safeguarding the rights of homebuyers.
