75% of State RERA Regulators Fail to Publish Annual Reports: FPCE
NEW DELHI: More than 75% of state real estate regulators, known as RERAs, have either never published annual reports or have discontinued their publication, despite a statutory obligation and directions from the Ministry of Housing and Urban Affairs. This concerning revelation was made by the Forum for People's Cause in Estate (FPCE) on Friday.
The FPCE released a status report on 21 RERAs as of February 13. The availability of updated annual reports is crucial as they contain detailed data 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.
Annual report data is not only vital for homebuyers to assess the credibility of the system but is equally necessary for both state and central governments to frame effective policies, design incentivization 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 the details shared by the FPCE, 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 emphasized that when regulators themselves do not 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 Real Estate (Regulation and Development) Act, 2016 (RERA), was introduced to bring transparency, accountability, and efficiency to the real estate sector. The act mandates the establishment of regulatory authorities in each state to oversee the implementation of the law. These authorities are responsible for ensuring that developers comply with the regulations, protecting the interests of homebuyers, and maintaining a transparent and fair market. However, the failure to publish annual reports undermines the effectiveness of these regulatory bodies and raises questions about the commitment to the principles of RERA.
The FPCE's report highlights the need for immediate action to ensure that all RERAs comply with their statutory obligations. This includes not only publishing annual reports but also ensuring that the data provided is accurate, comprehensive, and up-to-date. The lack of transparency and accountability in the real estate sector can have far-reaching consequences, including delayed project completions, financial losses for homebuyers, and a loss of trust in the regulatory framework.
In conclusion, the FPCE's findings underscore the critical importance of robust and transparent regulatory mechanisms in the real estate sector. It is essential for both state and central governments to take decisive action to address the shortcomings identified in the report and to ensure that RERAs fulfill their statutory responsibilities. Only through such measures can the real estate sector achieve the level of transparency and accountability that homebuyers and stakeholders rightfully expect.
