The Supreme Court of India delivered a landmark judgment reaffirming the primary objective of local development authorities as public welfare, striking down penalty claims that threaten the completion of stalled housing projects. Presided over by a bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran, the apex court in Authorised Representative for Granite Gate Properties Private Limited v. New Okhla Industrial Development Authority and Ors. held that state authorities cannot impose penal “time extension charges” on homebuyers or new developers during corporate insolvency proceedings.
The decision resolves a prolonged legal tug-of-war between victimised homebuyers and state administrative…