Supreme Court strikes down West Bengal law regulating realty sector

By Fe Bureau7 days ago

Sections 88 and 89 of the RERA did not implicitly permit the states to create their own legislation creating a parallel regime alongside the RERA which would have not required presidential assent. Hence, it is clear that WB-HIRA did not have presidential assent and was repugnant to RERA under Article 254, it ruled.

While the RERA was implemented on May 1, 2017, exactly a year after it was passed by Parliament, West Bengal was the only state that did not accept RERA, but came up with its parallel law in 2018.

Striking down the West Bengal Housing Industry Regulation Act 2017 (WBHIRA) as unconstitutional, the Supreme Court on Tuesday said it is in conflict with the Real Estate (Regulation and Development) Act, 2016 (RERA), a Central legislation implemented a year after its enactment across the country.

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A Bench led by Justice DY Chandrachud observed a state legislature cannot enact a law after Parliament has enacted a similar law on a subject.

Sections 88 and 89 of the RERA did not implicitly permit the states to create their own legislation creating a parallel regime alongside the RERA which would have not required presidential assent. Hence, it is clear that WB-HIRA did not have presidential assent and was repugnant to RERA under Article 254, it ruled.

Also, it noted that various provisions of the state enactment were directly in conflict with the Central enactment.

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