Supreme Court Criticises RERA’s Performance

05 Mar 2025 CW Team

The Supreme Court on March 4, 2025, called the functioning of the Real Estate Regulatory Authority (RERA) “disappointing,” noting its failure to adequately protect homebuyers' investments and promote the real estate sector.

This observation came from a Bench led by Justice Surya Kant, following a submission by senior advocate K. Parameshwar about the “domino effect” in the real estate sector — where the failure of one project often triggers the collapse of others across states. Parameshwar urged for a stronger regulatory mechanism within the Real Estate (Regulation and Development) Act of 2016 to curb this trend, which severely impacts both homebuyers and developers.

Justice Kant acknowledged the issue but also pointed out that establishing a stricter regulatory body might face objections from states on federalism grounds.

This isn’t the first time the court has criticised RERA’s performance. In September 2024, the Supreme Court described RERA as a “rehabilitation centre for former bureaucrats,” accusing it of undermining the Act’s purpose.

RERA was created under the 2016 Act to regulate and promote the real estate sector, ensuring transparent and efficient sales of plots, apartments, and projects while safeguarding consumer interests. It also established a dispute resolution mechanism and an Appellate Tribunal for handling appeals.

(Mercom)

Real Estate

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