Supreme Court Says ‘Better To Abolish RERA’ As It Helps Defaulting Builders
Supreme Court Says ‘Better To Abolish RERA’ As It Helps Defaulting Builders
Top court questions real estate regulators’ purpose, calls them ineffective for homebuyers and a refuge for retired officials.
The Supreme Court has delivered a sharp critique of the functioning of Real Estate Regulatory Authorities (RERA), observing that it may be “better to abolish” the institution if it continues to benefit only defaulting builders instead of protecting homebuyers.
A bench led by Chief Justice of India Surya Kant and Justice Joymalya Bagchi made the remarks while hearing an appeal related to the shifting of the Himachal Pradesh RERA office from Shimla to Dharamshala.
“It is high time that all the states should revisit and rethink constituting this authority,” the CJI said. He added, “Except facilitating the builders in default, this institution is doing nothing. Better abolish this institution, we don’t mind that.”
The court expressed concern that the people for whom RERA was created are “depressed, disgusted and disappointed,” as they are not receiving effective relief. When informed that a retired IAS officer had been appointed in the authority, the CJI remarked that in every state it has become a “rehabilitation centre.”
The observations came in the backdrop of the Himachal Pradesh High Court’s earlier decision to stay a state notification shifting the RERA office, warning that such a move could render the authority defunct. The Supreme Court, however, interfered with that stay and permitted the state to shift the RERA office to Dharamshala.
To reduce inconvenience for affected parties, the bench also directed that the appellate tribunal be moved as well. “With a view to ensure that persons affected by RERA orders are not inconvenienced, the principal appellate is also moved to Dharamshala,” it ordered.
The Supreme Court’s frustration with RERA’s performance is not new. In September 2024, the court had described RERA bodies as “rehabilitation centres for retired bureaucrats,” warning that the scheme of the Act had been frustrated.
The RERA Act of 2016 was enacted to regulate the real estate sector, promote transparency, safeguard homebuyers, and ensure timely project delivery. However, homebuyers’ groups have repeatedly argued that the authority has strayed from its mandate.
The Forum for People’s Collective Efforts, which played a key role in advocating for RERA, said the Chief Justice’s remarks echoed long-standing concerns that the institution has become a refuge for builders rather than consumers.
