‘Better to shut down RERA,’ says Supreme Court:It has become ‘rehabilitation centre for retired bureaucrats’, homebuyers get no relief

The Supreme Court of India has strongly questioned the functioning of the Real Estate Regulatory Authority (RERA), remarking that it may be better to shut the body down as it is failing to help homebuyers and instead benefiting defaulting builders. A bench led by Chief Justice Suryakant and Justice Joymaly Bagchi made these observations while hearing an appeal against a decision of the Himachal Pradesh High Court. The court said the time has come for state governments to seriously reconsider the structure and functioning of RERA, noting that the authority has completely deviated from the purpose for which it was created. ‘RERA has become a rehabilitation centre for retired bureaucrats’ During the hearing, the bench was informed that a retired IAS officer had been appointed to RERA. Reacting sharply, the Chief Justice said that in almost every state, RERA has turned into a “rehabilitation centre” for retired bureaucrats. He observed that these authorities are largely staffed by former officials, while the homebuyers— for whose protection RERA was established— remain disappointed and frustrated due to lack of effective relief. Permission to shift RERA office to Dharamshala The case was linked to a Himachal Pradesh government notification proposing to shift the RERA office from Shimla to Dharamshala, a move that had earlier been stayed by the High Court. The Supreme Court has now allowed the state government to proceed with the shift. It also directed that the RERA appellate tribunal be relocated to Dharamshala to make it more convenient for homebuyers. Court has raised similar concerns earlier This is not the first time the Supreme Court has criticised RERA. In September 2024, a bench of Justice Suryakant and Justice Ujjwal Bhuiyan had stated that former bureaucrats had diluted the spirit and intent of the RERA Act, turning the authority into a refuge for retired officials. Homebuyers say RERA has failed after 9 years Reacting to the court’s remarks, the homebuyers’ body Forum for People’s Collective Efforts (FPCE) said that even nine years after the RERA law came into force, there is still no assurance that RERA-registered projects will be completed on time. The organisation added that if RERA cannot meet buyers’ expectations, it requires urgent reforms or a complete rethink of its existence. Knowledge Box: What Is RERA? RERA was established in 2016 to bring transparency to the real estate sector, ensure accountability of builders, and protect homebuyers. The law aims to guarantee timely delivery of homes, adherence to promised terms, and protection against fraud.