Supreme Court Upholds Challenge to West Bengal Housing Industry Regulation Act, 2017 on Constitutional Grounds. The court found WB-HIRA unconstitutional for lacking Presidential assent and being repugnant to RERA.

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Case Note & Summary

The Supreme Court addressed the constitutional validity of the West Bengal Housing Industry Regulation Act, 2017 (WB-HIRA) in a writ petition filed under Article 32. The petitioners contended that WB-HIRA was inconsistent with the Real Estate (Regulation and Development) Act, 2016 (RERA), both of which fell under the Concurrent List of the Constitution. They argued that WB-HIRA had not received Presidential assent as required under Article 254(2) and that it contained provisions that were either directly inconsistent with RERA or were a mere replica of it. The court noted the legislative history leading to the enactment of RERA, emphasizing the need for comprehensive regulation in the real estate sector due to past consumer exploitation. The court highlighted that the legislative intent behind RERA was to establish a regulatory authority to ensure transparency and accountability in real estate transactions. The court found that WB-HIRA, while aiming to regulate the housing sector, did not align with the constitutional requirements as it lacked the necessary assent and introduced provisions that conflicted with RERA. Consequently, the court held that WB-HIRA was unconstitutional and could not stand alongside RERA, thereby upholding the challenge against it.

Headnote

A) Constitutional Law - Legislative Repugnancy - Constitutional validity of WB-HIRA - Real Estate (Regulation and Development) Act, 2016, Article 254 - The court examined the constitutional validity of WB-HIRA, finding it repugnant to RERA as it was not reserved for Presidential assent and contained provisions inconsistent with the Central enactment. Held that the State enactment could not coexist with the Central law without proper assent (Paras 4-5).

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Issue of Consideration

Whether the West Bengal Housing Industry Regulation Act, 2017 is constitutionally valid in light of the Real Estate (Regulation and Development) Act, 2016.

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Final Decision

The Supreme Court held that the West Bengal Housing Industry Regulation Act, 2017 was unconstitutional for lacking Presidential assent and being repugnant to the Real Estate (Regulation and Development) Act, 2016.

Law Points

  • Constitutional validity
  • Legislative repugnancy
  • Concurrent List
  • Presidential assent
  • Real Estate Regulation
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Case Details

2021 LawText (SC) (5) 2

Writ Petition (C) No. 116 of 2019

2021-05-04

Dr Justice Dhananjaya Y Chandrachud

Forum for People’s Collective Efforts, Not mentioned

The State of West Bengal, Not mentioned

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Nature of Litigation

Challenge to the constitutional validity of a state enactment.

Remedy Sought

Petitioners sought to declare WB-HIRA unconstitutional.

Filing Reason

Alleged inconsistency with RERA and lack of Presidential assent.

Issues

Constitutional validity of WB-HIRA Repugnancy between WB-HIRA and RERA

Submissions/Arguments

Petitioners argued WB-HIRA is unconstitutional due to lack of assent and inconsistency with RERA. Respondents defended the validity of WB-HIRA.

Ratio Decidendi

The court established that state legislation cannot conflict with central legislation under the Concurrent List without Presidential assent, emphasizing the supremacy of RERA.

Judgment Excerpts

The constitutional validity of the West Bengal Housing Industry Regulation Act, 2017 is challenged. WB-HIRA has neither been reserved for nor has it received Presidential assent under Article 254(2).

Procedural History

The petition was filed under Article 32 challenging the constitutional validity of WB-HIRA, leading to the Supreme Court's examination of legislative history and provisions.

Acts & Sections

  • Real Estate (Regulation and Development) Act, 2016: Article 254
  • West Bengal Housing Industry Regulation Act, 2017:
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