Can’t take over any more stalled realty projects: Supreme Court

New Delhi: The Supreme Court, which is still monitoring the implementation of several stalled real estate projects involving big names such as Amrapali, Jaypee and Unitech, on Thursday said that it can’t be expected to decide policy matters, run industry or take over any more stalled real estate projects.
A bench headed by Justice DY Chanrachud said that the court lacked the expertise to finish stalled projects. “It is not that we haven’t undertaken such exercises in the past, but we find it a drain on our resources,” he said.

In the process we may end up eroding our credibility, he observed. “A few years down the line, the homebuyers will ask what have you done.”

“We are an adjudicatory body. We can’t take these responsibilities. We can’t decide policy or run industry,” he said.

Many projects have failed in the real estate sector across the country due to the pandemic induced recession, the judge said. But other sectors have also been affected. “So why only real estate? Why not textiles? We have to draw the line somewhere.”

The judge said that the statutory regime has improved since the court first stepped in to the rescue of the homebuyers. Now, home-buyers have multiple options, to go to the consumer courts, the RERA and also go to the NCLT, the bench said.

The project involved Premia Structures and its proposed project at Noida, sector 62. The bench said that the affected could pursue their other legal remedies.