Supreme Court annuls WB's Housing Industry Regulation Act, calls it 'unconstitutional'

The apex court said the eastern state's Housing Industry Regulation Act creates a parallel regime and is in direct conflict with the Centre’s Real Estate (Regulation and Development) Act (RERA).

It observed that this law has the potential to encroach upon the domain of the Parliament and hence is unconstitutional.

"…we have come to the conclusion that WB-HIRA is repugnant to the RERA, and is hence unconstitutional. We also hold and declare that as a consequence of the declaration by this Court of the invalidity of the provisions of WB-HIRA, there shall be no revival of the provisions of the WB 1993 Act, since it would stand impliedly repealed upon the enactment of the RERA,” the apex court order said.

The court said the state's housing act is quite similar to Centre's RERA and hence repugnant to Parliament's law,

“WB-HIRA is repugnant to the RERA, and is hence unconstitutional. We also hold and declare that as a consequence of the declaration by this Court of the invalidity of the provisions of WB-HIRA, there shall be no revival of the provisions of the WB 1993 Act, since it would stand impliedly repealed upon the enactment of the RERA,” the Supreme Court bench said in its 190-page order.

Reacting to the court's verdict, Housing and urban affairs minister Hardeep Singh Puri tweeted: "Big relief to Home Buyers of West Bengal. Hon’ble SC declares West Bengal Housing Industry Regulation Act, 2017 (WBHIRA) as unconstitutional. Benefits of #RERA the consumer protection law passed by Parliament, will now also be available to homebuyers of the state."

The court, however, said that homebuyers who have purchased properties under the state law before this verdict, will not have to worry as their registration and other acts would remain valid.

“Hence, in exercise of the jurisdiction under Article 142, we direct that the striking down of WB-HIRA will not affect the registrations, sanctions and permissions previously granted under the legislation prior to the date of this judgment.”

West Bengal is the only state in the country that has not accepted the Centre's RERA.

The Central Real Estate (Regulation and Development) Act (RERA) came into effect on May 1, 2017, exactly a year after it was passed by the Parliament.

However, the Mamata Banerjee government rejecting the same implemented its own act titled West Bengal Housing & Industrial Regulation Act 2017 (WBHIRA).