Homeowners Celebrate as Supreme Court Ruling Favorably Affects Property Buyers
The real estate market in India, a significant sector of the economy, has been under scrutiny due to the presence of speculative investments and black money. The current government, led by Prime Minister Narendra Modi, has been actively involved in broad economic and policy reforms, with agencies like NITI Aayog advising on development and economic policy. However, there are no specific recent measures taken by the government to curb speculative investments in the real estate sector.
The Supreme Court has taken notice of this issue and has issued several directives aimed at cleansing the real estate market. The court's judgement on stressed housing projects is trend-setting, aiming to safeguard homebuyers' interests and providing bridge financing for such projects. The court has also directed the strengthening of the Real Estate Regulatory Authority (RERA), which was established to regulate the sector.
However, the presence of black money in the real estate sector is a concern, as it can incentivize fraudulent activities. The court has emphasized that the government should curb speculative investment to cleanse the market of fraud. The Supreme Court's judgement will force the central government to take an active role in providing houses for every family, as the right to housing is declared as a facet of the fundamental right to life under Article 21.
Instead of pursuing profit maximization through land auction as a private enterprise, the government should use its vast land bank to develop and build affordable housing. If the government develops and builds affordable housing, it could help achieve the purpose of providing a house for every family. Moreover, using the government's land bank for developing and building affordable housing could make housing costs more affordable and disincentivize fraud.
The Supreme Court's directions, while helpful, are not sufficient to completely cleanse the real estate market of fraudsters. The court has asked the Centre to consider establishing a revival fund for stressed housing projects, which could provide a much-needed boost to the sector. The government's intervention in the real estate sector could help disincentivize fraudsters and promote transparency and accountability.
In conclusion, the Supreme Court's directives and the government's role in providing houses for every family will not be effective until speculative investment is curbed. The government should take concrete steps to regulate the real estate sector, ensure transparency, and safeguard the interests of homebuyers. The ultimate goal is to create a fair and transparent real estate market that serves the needs of all citizens.
