Good morning. Imagine buying a couch on layaway, but for your dream home: India’s Supreme Court just mandated that developers register new housing projects with authorities once buyers pay 20%, putting builders on “house arrest” to curb delays or phantom developments. Buyers gain transparency, authorities track taxes, and everyone’s reminded that accountability isn’t just a deposit—it’s the foundation.

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Supreme Court Ruling on Housing Project Registration

India’s Supreme Court has mandated that all new residential developments must be registered with state revenue authorities once buyers pay 20% of the property’s total cost. The decision aims to reduce disputes and increase accountability in real estate transactions.

Key Requirements

• Builders must register projects with local revenue departments within 15 days after receiving 20% payment from buyers (either through an agreement or instalments).
• Registration details will include project timelines, buyer/seller information, and payment records.

Why This Matters

• Prevents fraudulent delays: Authorities can monitor project progress and ensure timely completion.
• Protects buyers: Reduces risks of disputes over unpaid dues or incomplete projects.
• Ensures tax compliance: Registration creates a centralized record for tax audits and revenue tracking.

Who Is Affected?

• Developers: Non-compliance could lead to fines or legal action.
• Homebuyers: Gains added legal protection and transparency.
• Local authorities: Must streamline registration processes to handle increased oversight.

The court emphasized that the rule applies retroactively to ongoing projects where buyers have already paid 20%. State governments have six months to implement the framework.

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