The Supreme Court has declared that the right to shelter is a fundamental right, emphasizing the state’s duty to protect homebuyers. During the disposal of four appeals on September 12, the Court noted that the right to housing goes beyond contractual obligation, being an essential part of the right to life under Article 21.
“Genuine homebuyers form the backbone of India’s urban landscape. Their protection aligns with both constitutional duty and economic policy. The Court aims to restore trust in the regulatory and insolvency frameworks, prevent speculative misuse, and ensure the dream home of India’s citizens doesn’t become a lifelong ordeal,” stated the Supreme Court judgment.
The Court has instructed the registry to forward a copy of this judgment to the Cabinet Secretary of the Government of India and to the Chief Secretaries of all States, who are to take immediate action.
The apex court has recommended that the Insolvency and Bankruptcy Board of India (IBBI) consider implementing early warning frameworks similar to Basel, inspired by practices like pre-bankruptcy mediation and preventive restructuring, encouraging directors to initiate restructuring before defaults escalate.
“The Union Government should conduct a consultative exercise to standardize RERA rules across states, eliminating ambiguities and addressing gaps in this crucial legislation. Housing Boards, State-level Urban Development Authorities (e.g., DDA, GMADA, MHADA, CHB), and CPSUs should create dedicated teams to revive and complete stalled projects under IBC mechanisms, fostering trust in the sector, ensuring affordable housing, and safeguarding genuine homebuyers,” the judgment elaborated.
The honorable court emphasized the government’s constitutional obligation to protect homebuyers’ interests and the broader economy. “This issue transcends mere housing; the banking sector, related industries, and employment for many are at risk,” the judgment further noted.
Dhananjaya Padmanabhachar, convenor of the Karnataka Home Buyers’ Forum, welcomed the judgment: “The Supreme Court has consistently issued directives for the protection of homebuyers and the implementation of RERA. Sadly, the RERA Authority in Karnataka has fallen short in delivering timely justice to homebuyers. I hope this SC order prompts RERA to adhere to the Supreme Court’s guidance.”
Vani Kishore, a homebuyer, described the Supreme Court’s affirmation of housing as a fundamental right under Article 21 as a watershed moment for homebuyers nationwide. She remarked that the judgment reinforces the idea that housing is not merely a commodity but a constitutional guarantee related to dignity, security, and livelihood. “I wish to point out my pending RERA case, scheduled for final orders on March 25, 2025. The judgment concerning my case is still awaited. It pertains to Section 17 of the Real Estate (Regulation and Development) Act, which states that after completion and handover, land rights must be transferred to the Owners’ Association. As the legal owner of my apartment who has paid my share of the land, I find it concerning that the land title remains in the builder’s name,” she expressed.
