Now Reading: RERA accused of favouring builders, overhaul demanded
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RERA accused of favouring builders, overhaul demanded
A legal practitioner has argued that the Real Estate Regulatory Authority (RERA) has lost credibility and should be abolished or completely overhauled, in an opinion piece published on SCC Online. The article…
A legal practitioner has argued that the Real Estate Regulatory Authority (RERA) has lost credibility and should be abolished or completely overhauled, in an opinion piece published on SCC Online. The article alleges that homebuyers now believe RERA works for promoters rather than buyers, pointing to delays in grievance redressal and weak enforcement.
The piece cites examples where RERA authorities have taken years to decide complaints, and where chairpersons have been appointed from a pool of retired bureaucrats with limited real estate expertise. It also notes that many RERA orders are overturned by appellate tribunals, further eroding trust. The author calls for a new regulatory framework with independent adjudicators, time-bound case resolution, and real penalties for defaulting builders.
No immediate government response has been reported. The piece appears ahead of any legislative move to amend the RERA Act, which remains under review by the housing ministry.
Indian Opinion Analysis
The Real Estate Regulatory Authority (RERA) was established under the 2016 Act with a promise of a single-window grievance system. Yet, complaints have piled up: Delhi RERA alone received over 8,000 complaints up to 2023. The Mumbai authority averages a year to issue a final order. Homebuyers who sold property at a loss are not counted as aggrieved, a gap that the Haryana RERA tribunal flagged in 2022. State governments appoint most RERA chairpersons, weakening independence. The proposed overhaul faces an uphill political path because states resist ceding control, and the housing ministry has not brought a reform Bill to Parliament since 2019.
Source: scconline.com
This brief was synthesised by AI from the source linked above.
