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Supreme Court strikes down W.B. law on regulating real estate

Topics Covered: Separation of powers between various organs dispute redressal mechanisms and institutions.

Supreme Court strikes down W.B. law on regulating real estate:


Context:

The Supreme Court has struck down West Bengal’s law on regulating the real estate sector in the State, and said it was “unconstitutional” as the statute encroached upon the Centre’s Real Estate (Regulation and Development) Act.

  • Also, in exercise of the jurisdiction under Article 142, the Court directed that the striking down of the law will not affect the registrations, sanctions and permissions previously granted under the legislation prior to the date of this judgment.

Why the court struck it down?

  • The top court said that by enacting West Bengal Housing Industry Regulation Act (WB-HIRA), 2017, what the legislature of the State has attempted to achieve is to set up its parallel legislation involving a “parallel regime’.
  • It said that the State legislature has encroached upon the legislative authority of Parliament which has supremacy within the ambit of the subjects falling within the Concurrent List of the Seventh Schedule.

What the Constitution says?

Article 254(1) in The Constitution Of India 1949:

(1) If any provision of a law made by the Legislature of a State is repugnant to any provision of a law made by Parliament which Parliament is competent to enact, or to any provision of an existing law with respect to one of the matters enumerated in the Concurrent List, then, subject to the provisions of clause ( 2 ), the law made by Parliament, whether passed before or after the law made by the Legislature of such State, or, as the case may be, the existing law, shall prevail and the law made by the Legislature of the State shall, to the extent of the repugnancy, be void.

InstaLinks:

Prelims Link:

  1. About Article 142.
  2. About Article 254.
  3. Subjects under 7th schedule.
  4. What happens to states laws inconsistent with Central laws?

Mains Link:

Discuss the significance of Article 254(1) in The Constitution Of India.

Sources: the Hindu.