The West Bengal Real Estate Regulatory Authority (WBRERA) will now continue with all pending complaints filed by home buyers against developers that were previously under the jurisdiction of the now-defunct West Bengal Housing Industry Regulatory Authority (WBHIRA). The Supreme Court clarified this while hearing a special leave petition (SLP) on May 12, stating that all orders issued by WBHIRA will remain valid. However, individuals who are dissatisfied with WBHIRA's orders can seek recourse before WBRERA.
The Supreme Court has clarified that all complaints filed by home buyers against developers with the now-defunct West Bengal Housing Industry Regulatory Authority (WBHIRA) will be carried forward by the West Bengal Real Estate Regulatory Authority (WBRERA). Orders issued by WBHIRA will also remain valid, and dissatisfied individuals can seek remedy with WBRERA.
This clarification brings significant relief to homeowners who had sought resolution through WBHIRA but were left in a state of uncertainty following the court's decision to abolish the law. As a result of this ruling, homeowners will not be required to initiate new proceedings against developers who have failed to fulfil their commitments, saving both time and money.
The SLP was filed by a homeowner from Kolkata who encountered difficulties in enforcing an order issued by WBHIRA shortly before its dissolution in May 2021. The Calcutta High Court declined to intervene in the matter, citing the earlier order on WBRERA issued by the Supreme Court.
Saptaparna Ray, an executive at a health insurance firm, purchased a flat in a Rajarhat project in 2013. The flat was scheduled to be delivered by December 2016. However, even by 2019, the flat had not been handed over to her, prompting her to approach WBHIRA and request a refund from the developer. In December of that year, WBHIRA ruled in her favour and ordered a refund. Subsequently, she filed for the execution of the order, but the process was delayed due to the pandemic in 2020. Finally, in March 2021, she received the execution order. However, when WBHIRA was dissolved following the Supreme Court's decision, the validity of the execution order became uncertain.
The bench comprising Chief Justice DY Chandrachud and Justice Pamidighantam Sri Narasimha clarified that all complaints filed with the former authority under WBHIRA would be transferred and resolved by the authority established under the Central Act. The court also directed the authority to proceed with the execution of the order in Ray's favour within one month from the receipt of the certified copy of the order.
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