Landmark Court Decisions That Shaped Real Estate In India

Property-related cases have always formed the bulk of cases that run up to the courts of law. Here are some landmark judgments over the years that are a lesson you could refer even in the future:

Prospective right of daughters over father's property

According to the Hindu Succession Act of 1956, daughters did not have any inheritance rights when it came to ancestral property. However, a landmark move in 2005 changed this. Later, an amendment was made that said the law cannot be used retrospectively. Therefore, if a property was alienated or portioned before December 20, 2004, when the Bill was introduced, daughters couldn't ask for their share.

Also read: Where's My Share: Understanding Daughters' Right To Property

Buyers can approach the National Consumer Disputes Redressal as an association

In August 2016, the National Consumer Disputes Redressal Commission (NCDRC) was directed by the Supreme Court to address aggrieved homebuyers whose flats were delayed by a well-known developer in Noida. According to the previous rule, if the token value of the property is less than Rs 1 crore, the complainant had to first file a plea at the district consumer forum. In this case, individuals couldn't appear before the NCDRC. However, the SC ruled that all the 43 homebuyers could get together and approach the NCDRC.

Also read: Buyer Associations Can Approach Apex Consumers' Panel Against Builders, Rules SC

Heavy hand on the project where the layout was changed

In a landmark move, developer Supertech was asked to refund buyers with a 14 per cent annual interest on their investments in Ceyane and Apex Towers. Two new towers had cropped up in the project, which were in violation of the UP Apartments Act of 2010. Another violation was noted wherein a setback of 16 metres had to be maintained to ensure safety during natural disasters. This norm was flouted, too. The company was also asked to shift willing buyers into its other project.

Also read: Why Buyers Must Stay Alert On Regulatory Lapses In Projects

Buyer-seller agreement is not sacrosanct if it is unduly biased

The Supreme Court ruled that in case a real estate construction giant is misusing his dominant position for unwarranted gains, the buyer-seller agreement can be open for revision. A real estate major in Gurgaon was fined Rs 630 crore for unfair conditions laid out in the agreement such as no exit options for homebuyers, unilateral charges, change in layout without consent, etc.

Also read: Clauses In Buyer-Seller Agreement That You Should Take Note Of

GPA, Will transfer shall not amount to transfer of property

To evade stamp duty, registration charges, payment of capital gains, some use a general power of attorney to sell their property. This leads to loss of revenue for the government while also circulating unaccounted money in the economy. Also, title verifications and certifications become tough.

Therefore, the SC ruled that such transactions would be illegal. However, those registering the deed of conveyance can still sell through a GPA.

With the real estate law, much of these issues have found a vent and home buyers are safeguarded against the troubles. However, these landmark decisions have helped check defaulters and build laws around these pointers.