Justice JB Pardiwala and Justice R Mahadevan passed this direction while upholding an NCLAT judgment which had rejected the insolvency petitions filed by speculative

In order to safeguard the interests of homebuyers, the Supreme Court has ordered that every residential real estate transaction for new housing projects shall be registered with local revenue authorities upon payment of at least 20% of the property cost by buyer/allottee.

The Court further directed that contracts that significantly deviate from the Model RERA Agreement to Sell, or that incorporate returns / buyback clauses where the allottee is over the age of 50, must be supported by an affidavit sworn before the competent Revenue Authority, certifying that the allottee understands the attendant risks.

A bench comprising Justice JB Pardiwala and Justice R Mahadevan passed this direction while upholding an NCLAT judgment which had rejected the insolvency petitions filed by speculative buyers against a housing project.