Supreme Court Questions Rera’s Role, Suggests Abolishment: Real Estate Industry in Limbo

The Supreme Court on Thursday made a significant oral observation regarding the Real Estate Regulatory Authority (Rera), suggesting that it should be abolished as it primarily benefits defaulting builders. The court urged states to reflect on the true purpose of such an institution, as reported by Bar and Bench.

A Bench comprising Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi made this observation while hearing an appeal against a Himachal Pradesh High Court order that had stayed a state government notification to relocate the state's Rera office from Shimla to Dharamshala.

CJI Kant emphasized, “All states should now think of the people for whom the institution of Rera was created. Except for facilitating builders in default, it is not doing anything else. Better to just abolish this institution.” This statement highlights the court's concern over the effectiveness and integrity of Rera.

The High Court had previously stayed the state government’s move to shift the Rera office, noting that the decision was taken without identifying an alternative office location. It also pointed out that the transfer of 18 outsourced employees to other boards and corporations, as per their request, would render the functioning of Rera defunct.

Despite the High Court’s order, the Supreme Court set aside the decision and permitted the state government to shift the Rera office to Dharamshala, along with relocating the appellate tribunal. The apex court stated, “With a view to ensure that persons affected by Rera orders are not inconvenienced, the principal appellate is also moved to Dharamshala.”

Rera was introduced in 2016 with the primary goal of addressing project delays, enhancing transparency, and protecting homebuyers. Initially, each state and union territory had its own Rera website. However, in September 2025, the Ministry of Housing and Urban Affairs launched a unified Rera portal, bringing together data from across states and union territories. This move was aimed at centralizing information and improving the overall efficiency of the regulatory body.

The Supreme Court’s criticism of Rera highlights the ongoing challenges in the real estate sector and the need for a more effective regulatory framework. Homebuyers and industry stakeholders are now waiting for a clear direction on how the regulatory landscape will evolve to better serve their interests.