Following the Supreme Court’s sharp criticism of RERA authorities, property developers and legal experts have pushed back, arguing that it would be unfair to dismiss the structural changes brought about by the Real Estate (Regulation and Development) Act and paint all state regulators with the same brush.
While hearing a matter related to the shifting of the RERA office in Himachal Pradesh, a Supreme Court Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi observed that the institution appeared to be doing little beyond “facilitating defaulting builders.” The court remarked it would not mind if the institution were abolished and called upon states to revisit how the authorities are constituted. In September 2024, the Supreme Court had also said some RERA bodies had become “rehabilitation centres” for former bureaucrats.
Structural Shifts
However, industry voices say performance varies significantly across states. “In Maharashtra, a lot of good work is happening. In some states it is effective; in others, it is not,” said Niranjan Hiranandani, Managing Director, Hiranandani Group.
He pointed to Maharashtra’s track record in publishing project details, appointing specialists, issuing orders and imposing penalties. “It has brought far greater confidence among buyers compared to the pre-RERA era,” he added.
A Mumbai-based developer, who did not wish to be named, agreed. “Because of RERA, the escrow mechanism came in. Lenders can now see approvals, licences and project details transparently,” he said, adding that authorities should use the criticism as an opportunity to improve functioning rather than dismantle the framework. “Millions of cases are pending in courts. You can’t say courts should be closed.”
Heena Chheda, Partner at Economic Laws Practice, said that while the Supreme Court’s critique highlights genuine concerns, dismissing RERA as a failure ignores the transformation it has triggered.
“By ring-fencing 70% of project receivables in escrow accounts and enforcing a uniform carpet area standard, RERA has curbed the systemic fund diversions that once fuelled long project delays and unchecked impunity,” she said.
Chheda added that with over 1,38,000 complaints disposed of, RERA has developed specialised real estate jurisprudence within a timeframe civil courts would have struggled to match. The move toward what she termed “RERA 2.0” reflects a push toward greater standardisation and transparency nationwide. “RERA is a work in progress, but it has shifted the sector from an unregulated free-for-all to a more accountable regime,” she said.
A senior property consultant said the industry must compare conditions before and after RERA. “Today there is far greater clarity on delivery timelines, refunds and project disclosures,” he noted.
Problem areas
But even supporters acknowledge shortcomings. Gulam Zia, Senior Executive Director at Knight Frank, said RERA authorities often function reactively. “They typically step in only when a grievance is filed,” he said.
He pointed out that in markets such as the Mumbai Metropolitan Region, thousands of projects are registered, making it nearly impossible for authorities to physically verify quarterly disclosures. “There is a possibility of developers submitting inaccurate data, but regulators lack the bandwidth to check everything,” he said.
Zia also flagged a shortage of domain specialists within many authorities. “RERA bodies were meant to mirror courts in delivering judgments. Instead, many are pushing for settlements,” he said, adding that states must provide adequate funding and manpower.
Sunil Rohokale, Co-founder, MD & CEO of ASK Investment Managers, said RERA authorities should focus on empowering buyers. “They must become enablers of informed decision-making. States need to strengthen oversight so that protecting buyers’ rights is not left to developers,” he said.
Despite the Supreme Court’s stern remarks, most industry observers agree that the law’s architecture remains sound. The debate now is less about scrapping RERA and more about strengthening its enforcement.