RERA Under Fire: Supreme Court Warns Authority Could Be Shut Down
Top court flags serious lapses in real estate regulator’s functioning, questions effectiveness in protecting homebuyers.
India’s real estate regulator is facing strong criticism from the Supreme Court, which warned that the Real Estate Regulatory Authority (RERA) could even be shut down if it fails to perform its duties properly.
During a recent hearing, the court raised concerns that the regulator — created to protect homebuyers — is not working as intended in several states. Judges observed that delays, weak enforcement and lack of accountability are defeating the purpose of the law.
Court Questions RERA’s Functioning
The bench pointed out that many homebuyers continue to struggle for possession, refunds and compensation despite the law being in place. Instead of resolving disputes quickly, cases remain pending for years.
The court said authorities cannot simply exist on paper. If the regulator fails to deliver justice to buyers, its existence becomes meaningless.
Why Homebuyers Are Still Suffering
RERA was introduced to:
- Ensure timely delivery of projects
- Stop builders from diverting funds
- Provide quick dispute resolution
- Increase transparency in property deals
However, the court noted:
- Orders are not enforced strictly
- Builders delay compliance
- Appeals drag cases endlessly
- State authorities vary in efficiency
Because of this, many buyers still approach consumer courts and high courts for relief.
Strong Warning From the Top Court
The judges warned that if regulators continue to remain ineffective, the judiciary may consider stronger action — including shutting down non-functional authorities.
The message was clear: the law was created to protect buyers, not developers.
What Happens Next
The court has sought responses and expects improvements in enforcement, faster hearings and stricter compliance against erring builders.
If authorities fail to reform, stricter monitoring or structural changes to the regulatory system could follow.
