Case:- MANSI BRAR FERNANDES Vs SHUBHA SHARMA AND ANR. (and connected cases)
Citation:- 2025 INSC 1110
Date:- 12.09.2025
Supreme Court Bench:- JUSTICE J.B. PARDIWALA & JUSTICE R. MAHADEVAN
The Hon’ble Supreme Court declared that the right to housing is a fundamental right under Article 21 of the Constitution and urged the Union Government to come up with a revival fund to provide financing for stressed real estate projects undergoing insolvency proceedings.
- The Hon’ble Court asked the Union Government to set up a revival fund to financially support real estate projects stuck in insolvency so that genuine projects are not liquidated. The Hon’ble Court made it clear that the IBC is meant to protect real homebuyers who put in their life savings, not speculative investors looking only for profits.
- The Hon’ble Court stated that buyers who enter into profit-making arrangements (like buyback schemes with assured returns) cannot misuse IBC as a recovery tool. They should go to RERA, consumer courts, or civil courts for remedies. The Hon’ble Court highlighted that real estate directly affects banks, allied industries, and millions of jobs, making homebuyer protection a matter of national economic importance.
- To prevent misuse of the revival fund, the Hon’ble Court ordered regular audits by the CAG, and audit reports should be made public in simple language. The government cannot remain a silent spectator as it has a constitutional obligation to safeguard homebuyers and the economy.
The judgment is aimed at restoring confidence in the real estate and insolvency system, ensuring citizens’ dream homes do not turn into a lifelong struggle.
