Should RERA be abolished? Reassessing Homebuyer–Builder Clash

Recently, news reports made rounds about the Supreme Court proceedings where the Bench reportedly remarked that “Better to abolish RERA as it only helps builders”. An authority established across various States through a Central law, and the Apex Court slams its existence based on faulty track record. Why did the Supreme Court Bench including the Chief Justice of India fume at all the RERA authorities at once? That too in such a sharp tone? 

Let us explore the details of what prompted the Supreme Court judges, even through oral remarks, to mock a statutory body established for real estate stakeholders.  

Why did the Supreme Court question RERA? 

The Apex Court was recently hearing an appeal that challenged the Himachal Pradesh High Court’s decision to stay a State Government notification for shifting HPRERA to Dharamshala. The Bench of Chief Justice Surya Kant and Justice Joymala Bagchi reportedly made sharp remarks against the Real Estate Regulatory Authorities across the country. Did the Apex Court mean to restrict regulation of real estate? Of Course NOT! 

The Supreme Court made such a remark with the observation that RERA authorities only aid “defaulting” builders. CJI Surya Kant expressed concern that the people for whom the institution was created (Homebuyers) were completely depressed, disgusted, and disappointed. Since none of them are getting any effective relief, he questioned as to who exactly RERA was serving.  

Bureaucracy in RERA 

During the proceeding, the Apex Court noted that a retired IAS Officer was appointed in Himachal Pradesh RERA. This information led the CJI to remark that all-State RERAs have become “rehabilitation centres” occupied by retired officers/bureaucrats. He even went a step ahead to recommend the services of some architect who was environment friendly, knows the cities and areas subject to development.  

Statutory Role of RERA 

The Real Estate (Regulation And Development) Act, 2016 was enacted for establishment of an authority which could regulate and promote the real estate sector. The crucial part to be played by RERA was to ensure efficient and transparent sale of real estate while protecting interests of consumers. The Act further ensured that there was a speedy dispute redressal mechanism.  

In crux, RERA was supposed to play as a protector where real estate builders and developers were kept in check so that projects were delivered as per rules and regulations, and interest of homebuyers were duly protected. Statutorily, RERA is designed as a regulatory, supervisory, and quasi-judicial authority, which ensures transparency, financial discipline, and accountability in real estate transactions, while balancing homebuyer protection with industry regulation. 

Homebuyers’ Sufferings 

When it comes to buying a house in India, people invest their life savings with hopes. However, when it comes to builder or real estate developer projects, news about delay in delivery are not unheard of. In fact, in recent years, big names came into limelight, for not delivering housing projects while hundreds of families await, having invested their life savings. Given below are certain news reports that throw some light on the agony of homebuyers in India: 

1. TOI reported about homebuyers awaiting compensation from defaulting developers, recovery warrants stalled at the execution stage. This was the case when it had already been two months since MahaRERA had issued standard operating procedure (SOP) to speed-up the process.
2. Another report voiced the distress of Bengaluru homebuyers as builders reportedly flouted Karnataka RERA orders with impunity. The authority’s limitation on recovery of money restricts execution, which in turn burdens the homebuyers, as per report.
3. An Economic Times Report reflected upon gaps in RERA as highlighted by a homebuyers’ body, who sought protection from ‘errant’ builders. The association reportedly approached the Union Housing Ministry for urgent intervention, stating buyers’ vulnerability to exploitation.  
4. In July 2025, home buyers reportedly alleged Real Estate scam of Rs 4,000 crores by Ozone Group. This was followed by reports of Enforcement Directorate attaching assets of Ozone Urbana Infra Developers, worth 423 crores.  
5. The law requires RERA authorities to publish annual reports. However, a homebuyers’ body reportedly highlighted that real estate reforms would lose credibility in the absence of data.