Mumbai: The Bombay high court has directed the Centre and the state government to file reply on a bunch of petitions filed by builders in Mumbai challenging the constitutional validity of certain provisions of Real Estate (Regulation and Development) Act (RERA).
The division bench of Justice Anoop Mohta and Justice Anuja Prabhudessai observed that applicability of RERA has to be tested and hence the court would hold a final hearing on the petitions.
The court has directed the Centre and the state government to file reply within three weeks and posted the matter for hearing after four weeks.
The petitioners have termed conditions imposed in RERA as “unreasonable”. One of the petitions has challenged RERA’s requirement to register ongoing projects with it even if more than 90 per cent work has been completed. As per the RERA’s circular, all projects which do not have a completion or occupancy certificate (OC) have to register under RERA.
The contention of the petitioner is that the RERA act cannot seek to impose liability on projects that are substantially completed.
The senior counsel Aspy Chinoy on behalf of DB Realty argued that the petitioner is challenging the validity of the act on ongoing projects.
“Can the legislation fix additional liability which were not there when development was sanctioned?” asked Mr Chinoy.
