‘Create A Revival Fund To Protect Dream Homes Of Middle Class': SC To Centre
A bench comprising justices J B Pardiwala and R Mahadevan directed the Centre to create a revival fund under National Asset Reconstruction Company Ltd.
By Sumit Saxena
Published : September 13, 2025 at 6:27 PM IST
New Delhi: The Supreme Court has said an average home buyer desires a stable roof over their family’s head and the anxiety of not having a home despite paying a fortune is bound to take a serious toll on health, productivity, and dignity, and the Centre cannot continue to be a silent spectator, when desire for a dream home of the taxpayers’ is shattered.
A bench comprising justices J B Pardiwala and R Mahadevan said: “The Union government shall consider establishing a revival fund under National Asset Reconstruction Company Ltd (NARCL) or expanding the SWAMIH Fund, to provide bridge financing for stressed projects undergoing CIRP, thereby preventing liquidation of viable projects and safeguarding homebuyer interests”.
The apex court passed a slew of directions to concerned authorities in connection with the larger interests of bona fide homebuyers and also for the stability of the real estate sector.
The bench, in a judgment delivered on September 12, said a home is not merely a roof over one’s head; it is a reflection of one’s hopes and dreams – a safe space for a family, a refuge from the worries of the world.
The bench said an average homebuyer usually pours his or her hard-earned money into the pockets of a developer. “For such individuals, a stable roof over their family’s head is all they desire. The anxiety of not having a home despite paying a fortune is bound to take a serious toll on health, productivity, and dignity”, it said.
The bench said the predicament of the middle class, which is tax-paying, renders an unnerving scenario: many have invested their lifelong savings, many pay rent and EMIs of their unfinished homes, and in some cases real estate developers did not start construction despite substantial payment.
The bench said it is therefore imperative that the life savings of a common person culminate in timely possession of their promised home. “Article 21 would mandate nothing less. In Samatha v. State of A.P. (1997), this court reiterated that the right to social and economic justice as well as the right to shelter are fundamental rights encompassed within the ambit of the right to life”, it said.
The bench said it would be thoroughly erroneous to treat home-buying as a mere commercial transaction, and stressed that housing is neither a luxury nor a commodity for speculation – it is a fundamental human need. The right to secure, peaceful, and timely possession of one’s home is therefore a facet of the fundamental right to shelter enshrined under Article 21, it said.
The apex court said state carries a constitutional obligation to create and strictly enforce a framework wherein no developer is permitted to defraud or exploit homebuyers. “Ensuring timely project completion must be a cornerstone of India’s urban policy. Equally, the State must proactively address the menace of a parallel cash economy and speculative practices in the real estate market, which artificially inflate housing costs and enable ‘trigger-happy’ investors seeking easy exits to jeopardize the interests of genuine end-users”, it said.
The apex court stressed that it is imperative that RERA authorities are not reduced to toothless tigers. “They must be equipped with adequate infrastructure, empowered tribunals, and effective enforcement mechanisms so that their orders are implemented swiftly, in letter and spirit. Only then can the constitutional promise of the Right to Shelter under Article 21 be meaningfully realized for homebuyers”, it said, adding that while this is a matter of policy falling within the exclusive domain of the government, it cannot remain a silent spectator.
“The Government is constitutionally obliged to protect the interests of homebuyers and the economy at large. It is not merely about houses or apartments; the banking sector, allied industries, and employment for a large populace are also at stake”, said the bench.
The apex court said lakhs of homebuyers are often confronted with uncertainty, regarding gaining possession of their houses, as several housing projects, pan-India, get exposed to insolvency proceedings.
The apex court said the Centre may consider establishing a body corporate, on the lines of NARCL or otherwise, promoted by real estate/ construction-focused PSUs or through Public-Private Partnerships, to identify, take over, and complete stalled projects under the IBC framework. “Unsold inventory from such projects could be utilized towards affordable housing schemes like PMAY or for Government quarters, thereby addressing both the housing shortage and revival of sick projects”, it said.
The apex court said a large fund involving public money, every rupee must be utilised strictly for its intended purpose of last-mile financing, and, to prevent misuse, it directed that a comprehensive periodic performance audit by the CAG be carried out, with reports placed in the public domain in a form comprehensible even to laypersons.
The bench directed that vacancies in NCLT/NCLAT be filled on a war footing, and dedicated IBC benches with additional strength should be constituted.
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