SC Urges Powerful Fund to Rescue Stalled Projects

Imagine this: you’ve invested your life savings—or taken a big home loan—to buy your dream home. You’re paying EMIs. You’ve moved out of your parents’ place. But the construction drags, delays pile up, maybe it’s even stalled. It’s a nightmare. Sadly, this is the reality for many homebuyers in India, caught in stalled real estate projects—promises made, payments done, but delivery nowhere in sight.

The Supreme Court (SC) of India has recently stepped in, calling out the scale of this crisis. It says the government cannot remain a spectator to the “disheartening picture” faced by middle‐class homebuyers. Lives are disrupted, finances strained, trust broken. The SC’s recent directives aim to bring those stranded projects back on track—and crucially, deliver justice to homebuyers.

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Why India Has So Many Stalled Housing Projects

Across India, thousands of apartment blocks and housing colonies are half-built or lying idle. In many cases, the builder has run out of money, gone bankrupt, or is stuck in legal or environmental approvals. These are called “stalled” or “stressed” projects.

How it hurts homebuyers (EMIs + rent + stress)

For ordinary people, this is heartbreaking. You pay EMIs to the bank and at the same time rent for your current home. Your savings are gone, your dream home is just a skeleton of concrete, and you don’t know when – or if – you’ll ever get the keys. The Supreme Court called this “a disheartening picture.”

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What the Supreme Court Said

The Court’s key remarks in simple words

In September 2025, India’s Supreme Court told the central government:

“Don’t just watch. Step in and help finish these stalled projects.”

It said the government cannot be a bystander while honest, tax-paying homebuyers suffer.

Housing as part of the Right to Life

The Court also said a house isn’t just a private deal with a builder; it’s part of the Right to Life under Article 21 of the Constitution. That means the state has a duty to protect buyers.

The Proposed Revival Fund: How It Would Work

Revival Fund under NARCL or Expansion of SWAMIH Fund

SC asked the Centre to consider setting up or expanding a “revival fund”, under NARCL (National Asset Reconstruction Company Ltd) or via the existing SWAMIH Fund (Special Window for Affordable & Mid-Income Housing). Purpose: to provide bridge financing to projects undergoing insolvency resolution, so viable projects aren’t liquidated unnecessarily.

Corporate body to take over unfinished projects

Another suggestion is the formation of a corporate entity (public sector or PPP) that can identify, take over, and complete stalled projects under the Insolvency & Bankruptcy Code (IBC). This would ensure that homebuyers, not just creditors, are considered. This body could step in when projects are viable but stuck because of financial or regulatory bottlenecks.

Other Fixes the Court Suggested

Stronger RERA protection

RERA – the Real Estate Regulation Act – was designed to protect buyers. But it’s weakly enforced and different in every state. The Court wants stricter, uniform rules and quicker action when builders default.

Better monitoring of developers’ use of funds

Homebuyers’ money should go into an escrow account and be released only as the work progresses. This stops developers from diverting funds to other projects.

Faster environmental clearances

Another reason for delays is confusing approvals. The Court recently ruled that state-level environmental authorities can give clearances in many cases. This clears a major bottleneck for hundreds of projects.

Benefits and Risks of a Revival Fund

Benefits for homebuyers

• Faster completion of homes.
• Relief from paying both EMIs and rent.
• Restored trust in the system.

Benefits for developers and the market

• Stuck capital gets moving again.
• Fresh investor confidence.
• A healthier real estate sector.

Risks of misuse and waste

• Government money could be misused without tight audits.
• Some projects may be beyond saving.
• Speculators (not genuine buyers) might try to benefit.

What This Means for You if You’re a Buyer

Immediate steps to take

• Check your project’s status on the RERA website.
• Join or form a buyers’ association.
• Keep all payment proofs and builder communication.

How to follow the progress

• Watch for news on the revival fund and any committees set up by the government.
• Ask your association to make formal representations to these committees.

Conclusion

The Supreme Court’s intervention is a ray of hope for millions of stuck homebuyers. If the government creates a strong revival fund and enforces stricter rules, thousands of unfinished flats can finally be delivered. But success will depend on tight monitoring, fair selection of projects, and transparency. For ordinary families, this could mean turning years of anxiety back into a dream come true.

FAQs

What is a “revival fund”?

It’s a government-backed pool of money to help complete half-built housing projects that are financially or legally stuck.

Will all stalled projects be covered?

No. Only those that are financially viable and pass scrutiny are likely to be funded.

Does this mean buyers will get their homes faster?

If your project qualifies, yes. The fund could help restart construction and finish it.

Will environmental rules be ignored?

No. The Court hasn’t removed rules; it has clarified who can give approvals so that good projects aren’t delayed unnecessarily.

What should I do right now as a homebuyer?

Track your project on the RERA site, join other buyers, and keep an eye on government announcements about the revival fund.