Supreme Court Calls For Rethink On RERA, Flags Concern Over Builder Defaults

The Supreme Court has delivered sharp observations on the functioning of the Real Estate Regulatory Authority, stating that it is time for all states to rethink how the institution is structured and operated. The court remarked that instead of protecting homebuyers, the authority appears to be facilitating defaulting builders in several instances, leaving aggrieved consumers disappointed.

A bench headed by the Chief Justice said the people for whom the authority was created are increasingly frustrated due to delays and lack of effective relief. The court went to the extent of observing that if the institution continues to function without delivering meaningful outcomes, its very purpose comes into question.

The remarks came while hearing a plea related to the shifting of the Himachal Pradesh RERA office from Shimla to Dharamshala. The apex court permitted the state government to relocate the office, subject to the final outcome of the matter pending before the high court. The state argued that the move was part of administrative measures aimed at decongesting Shimla and promoting balanced regional development.

During the hearing, the court also expressed concern over the appointment of retired bureaucrats to head such authorities, questioning whether the current framework is aligned with the objective of safeguarding homebuyer interests and ensuring timely project delivery.

The observations have reignited debate around the effectiveness of RERA across India. While the law was introduced to bring transparency and accountability to the real estate sector, stakeholders have increasingly flagged implementation gaps at the state level.

The court’s call for a comprehensive review signals the need for structural reforms to restore confidence among homebuyers and strengthen regulatory oversight in the real estate market.