Fifty years after bank nationalization, India is today witness to a unique form of nationalization of real estate, thanks to the Supreme Court.
To provide relief to homebuyers, the apex court has asked state-owned National Building Construction Corp. Ltd (NBCC) to take over the housing projects of two financially troubled real estate giants Amrapali and Unitech.
The licences of these two real estate groups have been revoked, with the court holding them responsible for diversion of funds and for not delivering projects on time after receiving money from homebuyers.
The court’s orders may have come as a punishing blow for the developers but it is not clear whether homebuyers can cheer yet, given that NBCC’s ability to deliver such projects on time remain untested.
The broader crisis in the real estate sector also does not appear to be over yet, suggests an analysis of the available data on the sector.