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Section 89: Act to have overriding effect

Real Estate (Regulation and Development) Act, 2016 • Official Statutory Text & Practice Guide

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Section 88 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 90

Legal Commentary & Landmark Judgments: Section 89

Section 89 codifies the statutory supremacy and non-obstante overriding effect of RERA, declaring that its provisions shall have effect notwithstanding anything inconsistent contained in any other law for the time being in force.

  • Statutory Supremacy Clause: RERA provisions override any inconsistent provisions contained in any other state or central law for the time being in force.
  • Preemption of State Housing Laws: State statutes inconsistent with RERA (e.g., local town planning exemptions, conflicting builder-friendly municipal codes) yield completely to RERA.
  • Protection Against Unilateral Developer Contracts: Builder-Buyer Agreements, one-sided arbitration clauses, or municipal bylaws that conflict with RERA statutory mandates are superseded and void pro tanto.
  • Harmonization with Central Economic Statutes: In cases of apparent conflict with other Central special laws like the IBC, courts apply harmonious construction while preserving RERA's core protections.
Key Landmark Precedents:
  • Forum for People's Collective Efforts v. State of West Bengal, (2021) 8 SCC 599: The Supreme Court struck down the West Bengal Housing Industry Regulation Act (WB-HIRA), ruling that RERA is an exhaustive central legislation with overriding effect under Section 89, rendering conflicting state laws unconstitutional under Article 254(1).
  • Pioneer Urban Land & Infrastructure Ltd. v. Union of India, (2019) 8 SCC 416: The Supreme Court harmonized Section 89 RERA with Section 238 IBC, holding that both statutes operate concurrently to protect allottees, and in the event of an irreconcilable conflict during insolvency, IBC prevails without eroding RERA remedies.
  • Neelkamal Realtors Suburban Pvt. Ltd. v. Union of India, 2017 SCC OnLine Bom 9302: Confirmed that Section 89 supersedes all prior state housing legislations and nullifies unilateral builder agreements.
Courtroom Practice & Strategic Litigation Guidance:

If a developer relies on an arbitration clause in the Builder-Buyer Agreement or a local municipal circular granting them extra completion time, invoke Section 89 to assert that RERA's statutory mandates override all inconsistent contractual covenants and local orders.

Section 88 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 90