India’s Supreme Court on Thursday delivered sharp criticism of the Real Estate Regulatory Authority (RERA), with Chief Justice Surya Kant saying the regulator has produced “nothing concrete” and has instead helped defaulting builders. The bench said the time had come to consider shutting RERA down.
The remarks were made during a hearing linked to the functioning of the Himachal Pradesh RERA.
Why RERA was created
RERA was created under the Real Estate (Regulation and Development) Act, 2016, after years of buyer complaints over delayed projects, shifting timelines and opaque practices in a fast-growing property market.
The law was pitched as a consumer-protection framework intended to bring transparency, set project timelines, and provide a dedicated dispute-resolution system for homebuyers. The Act came into force in 2017, and states and Union Territories were required to establish regulatory authorities and appellate mechanisms.
What the law requires developers to do
The Act introduced compliance requirements designed to curb diversion of buyer funds and prevent misleading project sales.
Among the core provisions is the requirement for developers to park a significant share of buyer collections in a dedicated account for construction-related spending, with withdrawals tied to professional certification. Projects above a specified size and unit threshold must be registered before marketing, and advertisements are required to carry registration details.
Developers are also expected to disclose key project information—such as layout, carpet area and delivery schedules—and limit collection of advances without formal sale documentation.
Court signals deeper dissatisfaction
The Supreme Court’s comments extend a line of earlier observations questioning whether RERA authorities are delivering meaningful relief to buyers.
In September 2024, a bench led by Justice Surya Kant had criticised RERA bodies and expressed concern over how the law was being implemented on the ground. In September 2025, another Supreme Court bench issued directions to states to strengthen RERA institutions by ensuring adequate infrastructure, staffing and sector expertise, including legal or consumer-facing capability at the member level.
Thursday’s hearing went further, with the court indicating that an institution meant to protect buyers cannot continue if it is seen as enabling repeated defaults.
Performance and enforcement remain under scrutiny
RERA has been positioned as the primary forum for disputes between homebuyers and developers, but enforcement and compliance have remained recurring points of contention across states, particularly in projects facing long delays.
The Supreme Court’s latest remarks are expected to intensify scrutiny of how state RERAs are constituted, how orders are enforced, and whether regulatory design changes are needed to ensure timely delivery and effective buyer protection