75% of State Real Estate Regulators Fail to Publish Annual Reports: Homebuyers’ Body

New Delhi: More than 75% of state real estate regulators, RERAs, have either never published annual reports, discontinued their publication, or not updated them, despite statutory obligations and directions from the Ministry of Housing and Urban Affairs. This was claimed by the Forum for People's Constructions in Environment (FPCE) on Friday.

The FPCE released a status report of 21 RERAs as of February 13. The availability of updated annual reports is crucial as they contain details on the performance of RERAs, including project completion status categorized by timely completion, completion with extensions, and incomplete projects. The ministry’s format for publishing these reports also specifies providing details such as the actual execution status of refund, possession, and compensation orders, as well as recovery warrant execution details with values and a list of defaulting builders.

FPCE emphasized that annual report data is not only vital for homebuyers to assess system credibility but is equally necessary for both state and central governments to frame effective policies, design incentive schemes, and develop tax policy frameworks. “Unless we have credible data proving that after RERA the real estate sector has improved in terms of delivery, fairness, and keeping its promises, we are merely firing in the air,” said FPCE president Abhay Upadhyay, who is also a member of the government’s Central Advisory Council on RERA.

According to details shared by the entity, seven states—Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Himachal Pradesh, and Goa—have never published a single annual report since RERA’s implementation. Nine states, including Maharashtra, Uttar Pradesh, and Telangana, which initially published reports, have discontinued the practice. Upadhyay stressed that when regulators themselves don’t follow the law, they lose the legal right to demand compliance from other stakeholders. “Their failure emboldens builders and weakens the very system they are meant to safeguard,” he added.

The lack of transparency and accountability in the real estate sector can have significant implications for homebuyers and the overall economic health of the states. The RERA framework was introduced to bring transparency, accountability, and consumer protection into the real estate sector. However, the failure of RERAs to publish and update annual reports undermines the credibility of these reforms and calls into question the effectiveness of the regulatory bodies.

FPCE’s report highlights the need for stringent action to ensure that RERAs comply with their statutory obligations. This includes regular audits, penalties for non-compliance, and public awareness campaigns to inform homebuyers about their rights and the importance of regulatory oversight. The central government and state governments must work together to strengthen the RERA framework and ensure that it fulfills its intended purpose of protecting homebuyers and promoting a fair and transparent real estate market.

In conclusion, the findings of the FPCE report underscore the critical importance of data transparency in the real estate sector. Without credible and up-to-date information, the real estate reforms risk losing their credibility and effectiveness, ultimately failing to serve the interests of homebuyers and the broader economy.