New Delhi: The Supreme Court has sharply criticised the functioning of the Real Estate (Regulation and Development) Act (RERA) authorities, observing that the institution appears to be failing in its core objective of protecting homebuyers and instead seems to facilitate defaulting builders.
In pointed remarks during a hearing on February 12, a bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi stated that RERA has not succeeded in fulfilling its intended purpose. The bench noted that the regulatory body, established to safeguard homebuyers from delays, fraud, and non-compliance by developers, is leaving affected individuals “completely depressed, disgusted and disappointed.”
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The observations came while hearing an appeal by the Himachal Pradesh government challenging a Himachal Pradesh High Court order that had stayed the state’s decision to relocate its RERA office from Shimla to Dharamshala. The Supreme Court stayed the high court’s December 30, 2025, directive and permitted the shift, but used the occasion to deliver a broader critique.
CJI Surya Kant remarked that states should seriously reconsider the constitution and role of RERA authorities. “It is high time that all the states should revisit and rethink constituting this authority,” he observed. He added, “Except facilitating the builders in default, this institution is doing nothing. Better abolish this institution, we don’t mind that.”
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The bench emphasised that the people for whom RERA was created—homebuyers facing project delays, stalled constructions, and unfulfilled promises—are now “completely depressed, disgusted and disappointed.” The court questioned why states established RERA in the first place if it fails to deliver justice to those it was meant to protect.
This scathing assessment aligns with longstanding criticisms of RERA, enacted in 2016 to promote transparency, accountability, and timely delivery in the real estate sector. Despite registering lakhs of projects and disposing of numerous complaints nationwide, enforcement remains a major weakness. Authorities often lack the teeth to execute orders, such as refunds, compensation, or penalties, leading to prolonged litigation in civil courts or revenue departments. Builders frequently exploit appeals, state-level variations in rules, and inadequate manpower to delay compliance.
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The Supreme Court’s frustration echoes prior judicial observations, including earlier remarks describing some RERA bodies as “rehabilitation centres for retired bureaucrats” and their overall performance as “disappointing.” Industry experts and homebuyer groups have long labelled RERA a “toothless tiger” due to poor implementation, uneven state-level rules, and builder influence.
In the Himachal case, the relocation issue stemmed from administrative convenience, with the state arguing that most complaints and properties fall in the Shimla region, while the respondent highlighted the smaller share in Dharamshala. The apex court’s decision to allow the shift clears the way for operational changes but underscores deeper systemic concerns.
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The remarks are likely to intensify calls for reforms, including stronger enforcement powers, uniform national standards, better staffing, and mechanisms to ensure actual recovery for buyers. As the real estate sector grows amid urbanisation, the Supreme Court’s candid warning serves as a wake-up call: without meaningful change, RERA risks losing credibility entirely.
Homebuyers continue to urge vigilance—checking RERA registrations, monitoring project progress, and pursuing complaints early—while hoping judicial pressure translates into actionable improvements.
