Other Forums Challenging Its Authority: UP RERA Seeks SC Intervention
After some real estate developers approached the insolvency tribunal to escape punishment, at least for a short period, the Real Estate Regulatory Authority of Uttar Pradesh (UP RERA) has decided to take the matter to the country’s top court.
Recently, two Noida-based developers – Shubhkamna Buildtech and Concord Infrastructure – moved the National Company Law Tribunal (NCLT) after the UP RERA directed them to compensate buyers for project delays. The NCLT has now directed that status quo be maintained in both the matters till further order.
According to media reports, the regulatory authority plans to write to the Union housing ministry, asking it to seek the Supreme Court’s (SC) intervention in the matter.
“We have decided to write to the housing ministry, informing them how in some cases we were unable to deliver justice to aggrieved homebuyers. We hope the government and SC will intervene to ensure proceedings and orders are unaffected by other courts,” a Hindustan Times report quoted UP RERA member Balvinder Kumar as saying.
Recently, chiefs of several state regulatory authorities had suggested that the RERA should be the only forum designated to resolve real estate-related issues in order to guard the interest of both homebuyers and developers.
Homebuyers are also of the opinion that defaulting developers are using the insolvency tribunal to stall proceedings against them.