Without RERA Data, Real Estate Reform Risks Losing Credibility: Homebuyers' Body

New Delhi: More than 75% of state real estate regulators, known as RERAs, have either never published annual reports, discontinued their publication, or not updated them, despite statutory obligations and directives from the housing and urban affairs ministry, claimed the Federation of People for Common Economic Rights (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 these contain detailed information on the performance of RERAs, including the status of project completion, 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 president Abhay Upadhyay, who is also a member of the government’s Central Advisory Council on RERA, emphasized the importance of credible data. “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,” he said.

According to the 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. Additionally, nine states, including Maharashtra, Uttar Pradesh, and Telangana, which initially published reports, have discontinued the practice.

Upadhyay further stated 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 lack of transparency and accountability in the publication of these reports not only affects the trust of homebuyers but also hampers the ability of both state and central governments to frame effective policies, design incentivization schemes, and develop tax policy frameworks. This highlights the urgent need for regulators to adhere to their statutory obligations and ensure the integrity and effectiveness of the RERA framework.