Supreme Court Questions RERA’s Effectiveness, Suggests Abolition

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Supreme Court Questions RERA's Effectiveness, Suggests Abolition

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The Supreme Court of India recently voiced strong concerns regarding the functioning of the Real Estate (Regulation and Development) Act (RERA) authorities, suggesting that the institution might be better abolished if it continues to primarily aid defaulting builders instead of protecting homebuyers. During a hearing on February 12, 2026, a bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi expressed significant dissatisfaction, noting that the ground-level impact of RERA has fallen short of expectations despite being enacted nearly a decade ago in 2016.

The judges observed that homebuyers, for whom RERA was created, are often left “depressed, disgusted and disappointed” and are not receiving effective relief. They questioned the utility of the law in its current form, highlighting a perceived gap between Parliament’s intent and the enforcement by state authorities. This criticism also included concerns about weak enforcement mechanisms, delays in adjudication, and a lack of seriousness in ensuring compliance.

RERA was introduced to bring transparency, accountability, and efficiency to the Indian real estate sector, mandating project registration, standardized agreements, and the deposit of 70% of buyer funds into escrow accounts for construction. While proponents acknowledge RERA’s role in improving transparency and buyer confidence, critics, including the Supreme Court, point to issues such as inconsistent implementation across states, increased compliance costs for developers often passed on to buyers, and delays in complaint resolution. The Supreme Court’s remarks, made during a case involving the Himachal Pradesh RERA, underscore the need for states to reassess who truly benefits from RERA’s operations

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