Supreme Court Criticizes RERA: Law Fails to Protect Homebuyers

The Supreme Court on Thursday delivered sharp and unusually candid remarks on the functioning of the Real Estate (Regulation and Development) Act, questioning whether the law has drifted from its original purpose of protecting homebuyers and instead become a shield for defaulting builders.

Hearing a matter related to the functioning of a state RERA authority, the court expressed strong dissatisfaction with how the regulatory framework is being implemented across states. The bench observed that despite RERA being enacted nearly a decade ago to bring transparency and accountability to the real estate sector, its ground-level impact has fallen far short of expectations.

In pointed observations from the bench, the court said RERA appears to be helping builders more than consumers, particularly in cases involving project delays and non-compliance with promises made to buyers. The judges remarked that instead of acting as a deterrent against errant developers, RERA authorities often seem to be facilitating them, leaving homebuyers stuck in prolonged disputes with little effective relief.

The court went so far as to question the very utility of the law in its current form, remarking that if RERA cannot protect the interests of ordinary buyers, its continuation in this manner serves little purpose. These comments were made while highlighting the gap between the intent of Parliament in passing the law and the way it is being enforced by state authorities.

The bench also flagged concerns over weak enforcement mechanisms, delays in adjudication, and the lack of seriousness in ensuring compliance with RERA orders. It noted that many developers continue to default with minimal consequences, while buyers are forced into lengthy legal battles despite approaching a regulator that was meant to offer swift and effective remedies.

Although the Supreme Court did not issue any directions to scrap or overhaul the law, its observations signal growing judicial frustration with the manner in which RERA is being administered. The remarks are likely to add pressure on state governments to strengthen their regulatory authorities, improve enforcement, and ensure that the law delivers meaningful protection to homebuyers rather than procedural relief to developers.

RERA was introduced in 2016 as a landmark reform to clean up India’s real estate sector, curb malpractices, and restore buyer confidence. The court’s comments underline the concern that unless implementation improves, the promise of the law risks being reduced to paperwork, leaving the fundamental problem of buyer protection unresolved.