The Supreme Court expressed significant disappointment with the Real Estate Regulatory Authority’s (RERA) performance, highlighting inefficiencies in its function and impact on the real estate sector. During a session on Tuesday, the court reviewed a plea concerning private builders, where the justices heard critical observations about RERA’s enforcement.
Justices Surya Kant and N Kotiswar Singh listened to senior advocate K Parameshwar, representing the Mahira Homes Welfare Association, who argued that the RERA Act’s implementation has been ineffective. Parameshwar emphasized the severe “domino effect” in the real estate sector, where the failure of one project by a builder jeopardizes their other projects, complicating legal adjudications.
“The failure of a project not only impacts the builder but also affects various stakeholders including investors, which necessitates stronger regulatory mechanisms,” Parameshwar stated, seeking the court’s intervention.
Justice Kant concurred with the assessment and voiced his concerns regarding the operational shortcomings of RERA. “The functioning of the regulatory authority under RERA is disappointing,” Justice Kant remarked, acknowledging the potential resistance from states to new regulatory measures.
The Real Estate (Regulation and Development) Act, enacted in 2016, aims to regulate the sector and safeguard homebuyers’ investments in housing projects. Despite its intentions, the act’s implementation has faced numerous challenges, as pointed out during the court proceedings.
