Supreme Court Ruling Boosts Homebuyers' Rights and Real Estate Transparency
The Supreme Court's recent judgment on stressed housing projects has set a new precedent, elevating the right to housing as a fundamental right and urging the government to establish a revival fund for troubled projects.
Real EstateHomebuyersReraSupreme CourtAffordable HousingReal EstateSep 14, 2025
The most important pronouncement of the court through its judgment is its declaration that the right to housing is not merely a contractual entitlement but a facet of the fundamental right to life under Article 21. This elevation will have a far-reaching impact in the country and will force the central government to take an active role in ensuring that every family is provided with a house.
By asking the Centre to consider establishing a revival fund to provide bridge financing for stressed projects, the court has prodded officials to provide a logical conclusion to these projects and safeguard homebuyers’ interests.
Though the Real Estate Regulatory Authority (RERA) was established to protect the interests of homebuyers, it doesn’t have enough power to act against violations. The court’s direction to strengthen the regulator is a significant step towards ensuring transparency and accountability in the real estate sector.
While the apex court’s directions are helpful, the real estate market will not be cleansed of fraudsters until the government prevents the sector from being used as a parking place for black money and speculative investment.
Speculative investment is like a steroid for real estate, which in turn attracts black money. The presence of stash incentivises the builder and buyer to opt for opaque dealings, which denies transparency and defeats the purpose of regulation.
If the right to housing is a facet of fundamental rights, every family would be entitled to a house. However, this purpose will not be achieved until speculative investment is curbed. Instead of pursuing profit maximisation through land auction as a private enterprise, the government should use its vast land bank to develop and build affordable housing for common people. When the government steps in, the cost of housing will become affordable and disincentivises fraudsters.
Frequently Asked Questions
What is the significance of the Supreme Court's ruling on the right to housing?
The Supreme Court's ruling elevates the right to housing as a fundamental right under Article 21, which will compel the government to ensure every family has a house.
What is the role of the Real Estate Regulatory Authority (RERA)?
RERA is established to protect the interests of homebuyers and ensure transparency in the real estate sector, though it currently lacks the power to act against violations.
Why is the establishment of a revival fund important for stressed housing projects?
The revival fund will provide bridge financing to complete stressed projects, ensuring that homebuyers' interests are protected and projects are completed.
How does speculative investment impact the real estate market?
Speculative investment acts like a steroid for real estate, attracting black money and leading to opaque dealings that defeat the purpose of regulation.
What steps can the government take to make housing more affordable?
The government can use its vast land bank to develop and build affordable housing, reducing the cost of housing and discouraging fraudulent activities.
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