Supreme Court Urges Centre to Create Revival Fund for Middle-Class Homebuye

On September 13, 2025, the Supreme Court of India called on the Centre to consider establishing a revival fund to aid stalled real estate projects, particularly to support tax-paying middle-class citizens struggling with incomplete home purchases. The court emphasised the constitutional duty of the government to protect homebuyers and suggested measures to enforce accountability and boost infrastructure.

Revival Fund Proposal to Safeguard Middle-Class Dream Homes

The Supreme Court highlighted the distress faced by middle-class families whose life savings are stuck in incomplete projects. The suggested revival fund would provide bridge financing for stalled developments to prevent their liquidation during insolvency proceedings. The court also recommended strengthening the SWAMIH Fund or establishing a new structure based on models like NARCL, with participation from real estate-focused PSUs or via public-private collaboration.

Strengthening RERA Implementation and Monitoring

To enhance effectiveness, the court directed state governments to ensure Real Estate Regulatory Authorities (RERA) have sufficient staffing, infrastructure and enforcement powers. RERA orders should be implemented promptly. It proposed that unsold inventories from stressed projects be used for schemes like PMAY or for government quarters.

IBC Bodies and Legal Infrastructure Reforms

The court pointed to the need for urgent infrastructure upgrades in NCLT and NCLAT bodies. It asked the government to fill judicial vacancies swiftly and consider appointing retired judges ad hoc until regular appointments are made. Issues like courtroom water seepage were cited, underlining the need for physical upgrades.

Read More: Supreme Court Approves ₹5,000 Crore Payout to Sahara Depositors!

Safeguarding Homebuyers Through Escrow and SOPs

Homebuyers who pay at least 20% of the property cost for new projects must have their transactions registered with revenue authorities. In early-stage projects, buyer payments should be routed through escrow accounts, with phased disbursements tied to project milestones. RERA bodies must establish such SOPs within 6 months.

Conclusion

The Supreme Court's observations mark a push towards systemic reforms in India’s real estate sector, particularly to protect genuine middle-class homebuyers. Proposals like a revival fund, stronger regulatory enforcement and legal infrastructure upgrades aim to assist in the completion of stalled housing projects and restore trust in the market.

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