Supreme Court Strikes Down West Bengal Housing Industry Regulation Act 2017, Termed it Unconstitutional

GG News Bureau

Kolkata, 4th May. The Supreme Court has repealed the West Bengal Housing Industries Regulation Act (HIRA), 2017, passed in 2017, in place of the Central Law (RERA), 2016 made by West Bengal to regulate the real estate sector. A bench of Justices DY Chandrachud and Justice MR Shah has termed the HIRA (law) made by West Bengal as null and unconstitutional.

The bench said in its order, “If the Parliament has enacted a law on a subject, the state cannot make the same law for the Legislature.” The apex court struck down the West Bengal Housing Industry Regulation Act, 2017, stating that it created a parallel mechanism and regime, which is inconsistent.

The court said, ‘The state legislature has encroached upon the legislative power of Parliament by implementing a parallel mechanism’. Also, the Supreme Court has said that the state government’s law has failed to protect the interests of home buyers. The court said that the state law is directly against the central law. Therefore it cannot be sustained.

The Forum for People’s Collective Efforts, an NGO, challenged the legality of state law, saying it had caused irreparable damage to home buyers. The Government of West Bengal had refused to implement RERA and enacted its own law. However, the Supreme Court has exercised the privilege granted under Article-142, stating that the permission and restrictions to the housing projects earlier granted under the HIRA Act will not be affected by its decision.

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