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2017 Supreme(Bom) 1982

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NARESH H. PATIL, R. G. KETKAR, JJ.
Neelkamal Realtors Suburban Pvt. Ltd. and anr. – Petitioners
Vs.
Union of India and ors. – Respondents
WRIT PETITION NO. 2737, 2711, 2708, 2727, 2730, 2255, 2256, 2711, 2727, OF 2017, WRIT PETITION LODGING NO. 2010, 1965, 2034, 1967, 2011 OF 2017, CHAMBER SUMMONS NO. 224, 223 OF 2017 AND CHAMBER SUMMONS LODGING NO. 306 OF 2017
Decided On : 06-12-2017

Advocates Appeared:
For the petitioners: Mr. Aspi Chinoy, Senior Counsel a/w. Mohd. Himayutullah, Ms. Rujuta, Patil and Ms. Niyathi Kalra i/b. Negandhi Shah & Himayatullah, in Dr. Veerendra Tulzapurkar, Senior Counsel a/w. Nikhil Sakhardande & Suraj Iyer i/b. Ganesh and Co., Mr. Girish Godbole,Senior Counsel a/w. Ms. Rujata Patil & Ms. Niyathi Kalra i/b. Negandhi Shah & Himayatullah, Mr. S.U. Kamdar, Senior Counsel a/w. Chirag Kamdar, Dhawal Mehta, Ms. Swapnil Khatri, Krishna Moorthy, Abir Patel, K. Vasania & Ms. Aditi Khanna i/b. Wadia Ghandy & Co., Mr. Prakash Randive a/w. Ashwini Kathane, Mr. Nikhil Sakhardande a/w. Pralhad Paranjpe i/b. A.A. Naik, Ms. Rujuta Patil and Ms. Niyathi Kalra i/b. Negandhi Shah & Himayatullah, Mr. Siraz Rustomjee, Senior Counsel a/w. Trushar Bhavsar, Ranbir Singh, Mr. Jarin Doshi i/b. Malvi Ranchoddas & Co., Mr. Tanveer Nizam a/w. Mrs. Mariam Nizam i/b. Altaf Khan
For the Respondents:Mr. Anil C. Singh, Additional Solicitor General a/w. Amogh Singh, Kapil Moye, Vijay Killedar, Vaibhav Sugdare, Aditya Thakkar, D.P. Singh, Ms. Indrayani Deshmukh, Ms. Geetika Gandhi, V.T. Kalyan, Sandesh Patil and Nagendra Goel, Ms. Tamanna Naik, Union of India, Mr. Ashutosh Kumbhakoni, Advocate General a/w. Shardul Singh i/by Mrs. Sushma Singh, Mr. Ashutosh Kumbhakoni, Advocate General i/by Mr. Amit Borkar, Advocate General i/by Mr. Akshay Shinde
For the State in all Petitions :Mr. Ashutosh Kumbhakoni, Advocate General a/w. Ms. G.R. Shastri, Addl. Govt. Pleader a/w Shardul Singh & Akshay Shinde
Mr. Darius Khambata, Senior Counsel appointed as Amicus Curiae with Ms. Naira Jejeebhoy and Pheroze Mehta

JUDGMENT :

Naresh H. Patil, J.

1. Rule. Rule made returnable forthwith. Heard finally.

2. The Apex Court by an order dated 4th September, 2017, in Transfer Petition (Civil) Nos. 1448 – 1456 of 2017, passed following order:-

“For the present we feel that it would be appropriate to direct the High Court of Judicature at Bombay to take up the matters i.e. W.P. (L) Nos. 1967, 2010, 2011, 2023, 1965, 2034, 4419, 4692 and 19157 of 2017 along with other connected matters, if any, pending in the High Court, together.

We request the Chief Justice of the High Court of Bombay to assign the cases to a particular Bench for expeditious decisions of the matters. Let matters be decided with two months.

Consequently the Transfer Petitions are disposed of.”

3. In this batch of Writ Petitions, petitioners had challenged legality and constitutional validity of certain provisions of the Real Estate (Regulation and Development) Act, 2016 (for short “the RERA”) as being violative of the provisions of Articles 14, 19(1)(g), 20 and 300-A of the Constitution of India. The petitioners prayed for a declaration that the first proviso to Section 3 (1), Section 3 (2)(a) & (c), Explanation to Section 3, Sections 4(2)(c) & 4(2) (d) (e) (f) (g) (k), Sections 4 (2) (l) (C) and 4 (2) (l) (D), Sections 5(1)(b), 5 (3) and the first proviso to Section 6 of the RERA are unconstitutional, illegal, ultra vires, without jurisdiction and without authority of law. The petitioners have also challenged validity of provisions of Sections 4, 5, 7, 8, 11 (h), 14 (3), 15, 16, 18, 22, proviso to Section 27(1)(a), Section 40, proviso to Section 43(5), proviso to Section 50(1)(a), Sections 53(1) & 53(3), 46, 59, 60, 61, 63, 64 and Section 82 of the RERA and Rules 3 (f), 4, 5, 6, 7, 8, 18, 19, 20, 21 of the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017 (for short “the Maharashtra Rules of 2017”).

4. During the course of hearing, the learned counsel appearing for the petitioners restricted their challenge to first proviso to Section 3(1), Section 3(2)(a), explanation to Section 3, Section 4(2)(l)(C), Section 4(2)(l) (D), Section 5(3), first proviso to Section 6, Sections 7, 8, 18, 38, 40, 46(1) (b), 59, 60, 61, 63, 64 of RERA and have advanced their submissions. We have dealt with the submissions of the learned counsel accordingly. Though in Writ Petition Nos.2711 and 2256 of 2017 validity of certain Rules of the Maharashtra Rules of 2017 was challenged but during the course of arguments none of the learned counsel advanced submissions regarding challenge to the Rules. Therefore, We would not deal with the challenge to the Rules framed under the RERA by the State of Maharashtra.

5. The RERA was enacted by the Parliament as Act 16 of 2016 in the year 2016. Some of the provisions of the RERA came into force on a date prescribed by the Central Government under the notification published in the official gazette. Different dates were appointed for different provisions of the RERA. By Notification No. S.O. 1544 (E), dated 26-4-2016, the Central Government appointed 1st day of May 2016 as a date on which some of provisions of the RERA came into force, namely, Sections 2, 20 to 39, 41 to 58, 17 to 78 and 81 to 92. By Notification No. S. O. 1216, dated 19-4-2017 some more provisions of the RERA came into force, namely, Sections 3 to 19, 40, 59 to 70 and 79, 80 w.e.f. 1st May, 2017.

6. The statement of objects and reasons of the RERA, in paras 1, 2 and 3, reads as under:-

Statement of Objects and Reasons. - The real estate sector plays a catalytic role in fulfilling the need and demand for housing and infrastructure in the country. While this sector has grown significantly in recent years, it has been largely unregulated, with absence of professionalism and standardization and lack of adequate consumer protection. Though the Consumer Protection Act, 1986 is availab















































































































































































































































































































































































































































































































































































































































































































































































































































































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