Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
FeaturedThe Supreme Court clarified that time extension charges imposed by developer defaults cannot be charged to homebuyers or the statutory resolution authority (SRA). This ruling aims to protect consumer interests in real estate transactions.
FeaturedIn a significant policy shift, SEBI has clarified that Infrastructure Investment Trusts (InvITs) can now exceed 49% loan-to-value (LTV) ratios for capital expenditure and debt refinancing. This circular is expected to enhance financial flexibility for infrastructure trusts.
The Supreme Court has ruled that penalties imposed on an insolvent developer cannot be recovered as CIRP costs from homebuyers, affirming the rights of consumers in insolvency proceedings.
The ITAT Cochin determined that land integral to an approved housing project must meet the one-acre requirement for Section 80-IB(10) deductions, ruling that unrelated land cannot be counted.
The ITAT Mumbai held that the fair market value of surrendered tenancy rights serves as the cost of acquisition for properties redeveloped under such schemes, impacting assessment of capital gains.
The NCLT has recognized homebuyers as financial creditors and initiated CIRP against a real estate developer for defaulting on ₹6.76 crore. The amounts paid are classified as financial debts under the IBC.
The NCLT has begun insolvency proceedings against Primezone Developers due to their failure to refund amounts to allottees for unfulfilled plots. The tribunal ruled that this constitutes a financial debt default.
Real estate promoters are now liable to pay GST under the reverse charge mechanism for TDR, FSI, and long-term leases received.
The Pune ITAT ruled that Section 68 applies to customer advances, affirming that real estate developers must substantiate these credits to avoid tax complications.
SEBI has provided important clarifications regarding the status of Special Purpose Vehicles (SPVs) under InvITs, allowing them to retain SPV status even post-concessiontermination, along with prescribing timelines for project exit or restructuring.
The Karnataka High Court affirmed the dismissal of a review petition under RERA, stating that promoters cannot alter their defence at the review stage. The ruling underscores the importance of consistent factual presentation.
In a recent ruling, the CESTAT quashed a service tax demand on builders' own residential projects executed prior to July 1, 2010, impacting taxation practices for real estate developers.