Supreme Court Questions RERA’s Effectiveness, Says It Appears to Favour Builders

• Court says RERA appears to be providing convenience to defaulting builders

• Apex court stays High Court order on shifting Himachal RERA office to Dharamshala

• Judges stress that the law must prioritise homebuyers’ interests and timely justice

New Delhi: The Supreme Court has strongly criticised the functioning of Real Estate Regulatory Authorities (RERA), questioning whether the system is delivering justice to homebuyers or merely easing compliance for errant developers.

During a hearing on Thursday, the bench made sharp observations, stating that the regulatory mechanism appears to be falling short of its original purpose. The court remarked that instead of safeguarding buyers, RERA in several instances seems to be “providing convenience to defaulting builders,” raising doubts about its effectiveness.

The judges emphasised that RERA was enacted to ensure transparency, accountability, and time-bound resolution of disputes in the real estate sector. However, the ground reality, as reflected in numerous complaints, suggests that many homebuyers continue to face long delays without meaningful relief.

The court observed that states must revisit how the institution is functioning and ensure it serves the people it was created to protect. The remarks signal growing judicial concern over the gap between the law’s intent and its implementation.

Himachal Pradesh RERA Office Dispute
The Supreme Court also dealt with a related matter concerning the relocation of the RERA office in Himachal Pradesh. The state government had issued a notification to shift the office from Shimla to Dharamshala, which was later stayed by the High Court over concerns about disruption to operations.

Intervening in the case, the apex court stayed the High Court’s order, allowing the state government to proceed with the transfer. At the same time, it directed authorities to ensure that the functioning of RERA and its Appellate Tribunal remains unaffected and that pending cases continue to be heard without delay.

Focus on Homebuyer Concerns
The bench highlighted that the objective of RERA was to provide a fast-track grievance redressal system for property buyers and restore confidence in the real estate sector. Yet, repeated complaints of stalled projects, delayed compensation, and prolonged legal processes suggest the need for stronger enforcement and accountability.

Legal experts say the court’s remarks could trigger renewed debate on regulatory reforms and push states to strengthen implementation mechanisms so that the framework truly benefits consumers rather than becoming a procedural formality.