Middle-class pays, builders stall: SC calls for revival fund to fix housing disaster
To address the crisis, the court suggested the creation of a revival fund through NARCL, a new public-private body, or by expanding the existing SWAMIH Fund. This fund would offer bridge financing for viable projects undergoing insolvency proceedings, preventing liquidation and safeguarding homebuyer investments.
- Sep 13, 2025,
- Updated Sep 13, 2025 10:18 PM IST
Calling out the “disheartening plight” of India’s tax-paying middle class, the Supreme Court has asked the Centre to consider setting up a revival fund to rescue stalled housing projects—many of which have left homebuyers with unfinished buildings despite paying EMIs and rent simultaneously.
The judgment, delivered by a bench of Justices J B Pardiwala and R Mahadevan, described the growing number of incomplete housing projects as a direct violation of middle-class homebuyers’ rights. The court said the State has a constitutional obligation to ensure developers cannot defraud or exploit citizens and that timely completion must be central to India’s urban policy.
“The anxiety of not having a home despite paying a fortune is bound to take a serious toll on health, productivity and dignity,” the bench said, adding that some projects haven’t even started despite full or near-full payments by allottees.
To address the crisis, the court suggested the creation of a revival fund through NARCL, a new public-private body, or by expanding the existing SWAMIH Fund. This fund would offer bridge financing for viable projects undergoing insolvency proceedings, preventing liquidation and safeguarding homebuyer investments.
The bench said unsold inventory from such projects could be used for affordable housing schemes like PMAY or government quarters, thereby aligning public welfare with real estate recovery.
The court also issued a slew of structural reform directives—ranging from urgent staffing of NCLT/NCLAT benches and infrastructure upgrades to empowering RERA authorities with resources and enforcement power.
It called for a national committee, chaired by a retired High Court judge, to recommend systemic changes and suggested that all residential transactions be registered once 20% of the value is paid, with funds held in escrow for early-stage projects.
Calling out the “disheartening plight” of India’s tax-paying middle class, the Supreme Court has asked the Centre to consider setting up a revival fund to rescue stalled housing projects—many of which have left homebuyers with unfinished buildings despite paying EMIs and rent simultaneously.
The judgment, delivered by a bench of Justices J B Pardiwala and R Mahadevan, described the growing number of incomplete housing projects as a direct violation of middle-class homebuyers’ rights. The court said the State has a constitutional obligation to ensure developers cannot defraud or exploit citizens and that timely completion must be central to India’s urban policy.
“The anxiety of not having a home despite paying a fortune is bound to take a serious toll on health, productivity and dignity,” the bench said, adding that some projects haven’t even started despite full or near-full payments by allottees.
To address the crisis, the court suggested the creation of a revival fund through NARCL, a new public-private body, or by expanding the existing SWAMIH Fund. This fund would offer bridge financing for viable projects undergoing insolvency proceedings, preventing liquidation and safeguarding homebuyer investments.
The bench said unsold inventory from such projects could be used for affordable housing schemes like PMAY or government quarters, thereby aligning public welfare with real estate recovery.
The court also issued a slew of structural reform directives—ranging from urgent staffing of NCLT/NCLAT benches and infrastructure upgrades to empowering RERA authorities with resources and enforcement power.
It called for a national committee, chaired by a retired High Court judge, to recommend systemic changes and suggested that all residential transactions be registered once 20% of the value is paid, with funds held in escrow for early-stage projects.