The Delhi High Court ordered NBCC to refund over INR 76 lakh plus 12% interest compensation to a homebuyer who did not receive possession of his flat even after paying the full sale price in 2017. The petitioner, a retired government employee, had purchased a flat in NBCC's 2012 Gurugram housing project but structurally defective houses were constructed, leaving him with no housing options. NBCC was criticized for refusing interest on the refund and not ensuring rehabilitation. The court said NBCC's offer to return only the principal without interest was inadequate given rapidly rising land prices in NCR.Read more

The Maharashtra State Human Rights Commission has summoned senior officials from the Navi Mumbai Municipal Corporation, City and Industrial Development Corporation, and State Chief Secretary to address concerns about rampant encroachment on protected Belapur Hill areas. Environmental activists formed a human chain to raise awareness about unchecked illegal construction that threatens the environment and increases landslide risks. Residents say the issue has been ongoing for nine years without proper action. The Commission observed that authorities pass responsibilities instead of taking action and directed the Chief Secretary to determine accountability. In response to a complaint, the Chief Minister has also ordered an investigation into an alleged land grab racket involving constructions without approvals.Read more

A recent data analysis by the Nagpur Municipal Corporation found that 1,459 out of 7,054 high-rise buildings over 15 meters in the city lacked mandatory fire safety no-objection certificates. Only 903 buildings had implemented necessary firefighting measures. The earlier Development Control and Promotion Regulations (DCPR) effective from December 2020 had raised the height limit requiring a fire NOC from 15 to 24 meters. However, recent amendments to the Maharashtra Fire Prevention and Life Safety Measures Act now mandate fire arrangements for all buildings above 15 meters. The Acting Chief Fire Officer has expressed concern over the safety risks and urged builders and occupants to comply with regulations by obtaining provisional clearance and installing required fire arrangements.Read more

The National Company Law Tribunal has approved Shree Naman Developers' resolution plan to acquire the financially distressed real estate developer Radius Infra Holdings undergoing corporate insolvency. Radius had total liabilities of INR 1,050 crore. Under the plan, Naman Developers will acquire Radius by paying INR 180 crore, settling 17% of total debt. As part of the plan, Naman will develop Radius' prime half acre land parcel in Mumbai's Andheri within 36 months. Naman Group will also infuse INR 50 crore in working capital for the project over and above the INR 180 crore acquisition amount.Read more

The Noida Authority has filed a review petition in the Allahabad High Court against an order directing it to register 330 flats in the Lotus 300 housing project. The earlier order came in February 2024, asking the Authority to grant occupancy certificates and complete registrations within a month. It also ordered an ED investigation against the builders for allegedly siphoning homebuyer funds. In its petition, the Authority argues it cannot register flats due to outstanding builder dues of INR 166 crore. This could set an undesirable precedent for other defaulters under the Authority. The project's developer, Hacienda Project Private Limited, is facing insolvency proceedings.Read more

The Supreme Court is hearing a case regarding delayed possession of flats in Mantri Serenity, a project in Bengaluru by Mantri Castles Private Ltd. While the developer claims to have offered possession, Moneycontrol found that several flats still lacked occupancy certificates (OC). On April 30th, the Court took up the issue based on submissions from homebuyers' counsel representing 48 buyers who booked flats between 2013-2016 for INR 75-95 lakh but did not receive possession as promised between 2015-2019. While the interim order in November directed the developer to hand over possession, the developer did so without necessary OC. The Court's latest status quo order prevents further unilateral actions until the developer demonstrates fulfillment of all legal requirements to offer rightful possession to the homebuyers.Read more

The Reserve Bank of India recently updated its guidance note on operational risk management and extended its scope to include NBFCs like housing finance companies. Earlier, operational risks mainly arose from increasing IT dependence. However, the pandemic has highlighted the importance of managing risks from third party reliance as financial institutions increasingly adopt virtual working models. The new note aims to promote better risk management practices among regulated entities and enhance their operational resilience given complex interconnections. It explicates the three lines of defence model and has separate principles for risk mapping, incident management, ICT risks, lessons learned, etc.Read more

The Bombay High Court recently ruled that if a flat purchase agreement requires the promoter to transfer land rights to a housing society, the competent authority must grant a certificate of deemed conveyance as per Section 4 and 11(3) of the Maharashtra Ownership Flats Act, 1963. The court heard petitions from the New Manoday Cooperative Housing Society challenging orders rejecting deemed conveyance and attempting deregistration of the housing society due to title disputes. The High Court stated the Authority lacked jurisdiction to consider title issues and must only review developer agreements. It also directed the Authority to issue deemed conveyance.Read more

The Delhi High Court recently dismissed an appeal filed by the Enforcement Directorate against a trial court's decision to discharge accused persons of PMLA charges after they were acquitted of scheduled offences under the Indian Penal Code. The High Court noted that as per previous Supreme Court orders, the scheduled offence and proceeds generated from it form the very basis for a money laundering charge. If a person is acquitted of the scheduled offence, the foundation of the offence is removed and the money laundering charge cannot survive. Consequently, attached properties cannot legally be treated as proceeds of crime.Read more

Two flat buyers, Sodipto Chatterjee and Tarun Kumar Ray Chaudhury, had purchased flats in 2012-2014 from developer Tirupati Construction Company, which had an agreement with landowner Ekkori Das to develop the land. However, disputes later arose between Das and the developer, cancelling their agreement. As a result, conveyance deeds were not executed for the flats. The flat buyers filed a complaint with the West Bengal State Consumer Commission seeking execution of deeds. The Commission directed the landowner and developer to do so, relying on a previous ruling that flat buyers should not suffer due to third-party disputes.Read more