FPCE Seeks RERA Law Amendments to Protect Homebuyers and Ensure Transparency
The Forum for People's Collective Efforts (FPCE) has called for amendments to the RERA law to protect homebuyers' interests and ensure transparency in the real estate sector. The changes include verifying builders' track records and ensuring compensation for failed promises.
ReraReal EstateHomebuyersTransparencyRegulationsReal Estate NewsOct 26, 2025
FPCE President Abhay Upadhyay has written a letter to Union Minister of Housing and Urban Affairs, Manohar Lal, outlining several key amendments. One of the primary demands is the introduction of a mechanism to verify the track record of builders before granting permission to launch new projects. This would help prevent errant developers with poor track records from continuing to exploit new buyers.
The association has also called for a new provision in the RERA Act to ensure compensation to homebuyers if builders fail to provide promised facilities and amenities. Currently, there is no such provision, leaving many homebuyers in the lurch. FPCE suggests the introduction of a separate section in the Act to specifically address this issue.
Additionally, FPCE has demanded a uniform rule for the refund of money in case of unit cancellations by property buyers. This would provide clarity and fairness in the refund process, reducing disputes and legal battles.
In his letter, Upadhyay, who is also a member of the Central Advisory Council, RERA, highlighted the need for immediate policy intervention. He suggested that the ministry should issue a Standard Operating Procedure (SOP) to all RERA authorities, directing them to ensure that builders deposit adequate funds in an escrow account to complete pending facilities. The regulators should monitor and enforce the timely completion of these facilities.
FPCE pointed out that RERA authorities currently do not verify whether a promoter has cleared all dues to allottees of other projects or any charges levied by the central or state authorities or any courts/forums/quasi-judicial bodies. This lack of verification allows errant developers to continue launching new projects, perpetuating injustice to new buyers.
To address this, FPCE suggested that the ministry mandate all RERA authorities to obtain a declaration from promoters before registering any new project. Promoters must confirm that they have cleared all dues payable to allottees, including under any order of any forum, court, or quasi-judicial bodies across pan-India jurisdiction. Promoters should also declare that they have cleared all dues payable to any authorities/forums/courts across India, including any penalties levied by such bodies.
The declaration should apply not only to the promoter company but also to group companies with the same brand name, entities with common promoters/shareholders. If any promoter submits a false declaration, there must be a legal provision to permanently bar such a promoter from the real estate business.
Upadhyay emphasized that these gaps need urgent policy intervention through amendments to the Act or, in the interim, through SOPs to all state RERA Authorities. He noted that this is a wake-up call for the ministry, as builders are brazenly exploiting homebuyers—delaying projects, misappropriating funds, and violating agreements—right under the nose of RERA authorities.
Many regulators remain passive spectators, despite having sweeping powers under the RERA Act to investigate, penalize, and pass binding orders. Their silence and inaction in the face of glaring violations raise serious questions about regulatory will and, in some cases, suggest a troubling nexus that shields errant builders from accountability.
Upadhyay added that the RERA registration number has not become a symbol of trust for consumers. Unlike FSSAI, where the stamp instills confidence that the product is safe for consumption, the RERA registration number has failed to become a symbol of trust. He urged the Union ministry to step in urgently to rein in these exploitative practices and restore faith in the real estate sector.
These proposed amendments and SOPs are crucial steps towards ensuring that the real estate market operates fairly and transparently, protecting the interests of homebuyers and promoting the overall health of the industry.
Frequently Asked Questions
What is RERA?
RERA stands for the Real Estate (Regulation and Development) Act, 2016. It is a law in India designed to protect the interests of homebuyers and ensure transparency in the real estate sector.
Who is FPCE?
FPCE stands for the Forum for People's Collective Efforts. It is a homebuyers' body that advocates for the rights and interests of homebuyers in India.
What changes has FPCE demanded in RERA?
FPCE has demanded changes to RERA, including verifying builders' track records before granting project approvals, ensuring compensation for failed promises of facilities, and implementing a uniform rule for refunding money in case of unit cancellations.
Why is verifying builders' track records important?
Verifying builders' track records is important to prevent errant developers with poor track records from launching new projects, which can lead to delays, misappropriation of funds, and other issues for homebuyers.
What is the role of the Union Minister of Housing and Urban Affairs in this context?
The Union Minister of Housing and Urban Affairs plays a crucial role in implementing and enforcing RERA. FPCE has written to the minister to seek amendments to the Act and issue Standard Operating Procedures (SOPs) to RERA authorities.
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