Delivering a stinging rebuke, the Supreme Court said Real Estate Regulatory Authorities across states appear to serve little purpose beyond shielding defaulting builders, adding it may be “better to abolish” them if they fail to protect homebuyers.
While hearing a plea related to the shifting of the Himachal Pradesh RERA office, a bench led by Chief Justice Surya Kant sharply criticised the functioning of RERA bodies nationwide. The Court observed that the very beneficiaries for whom the institution was created—homebuyers—are left “depressed, disgusted and disappointed” due to ineffective relief mechanisms.
Calling the authorities a “rehabilitation centre” for retired bureaucrats, the bench remarked that states must revisit the rationale behind constituting such bodies if they merely facilitate builders in default rather than regulate them.
The Court permitted the Himachal Pradesh government to shift its RERA office from Shimla to Dharamshala, staying the High Court’s contrary order, but made it clear that the larger issue is institutional credibility. It also suggested that appellate powers be moved to Dharamshala to avoid inconvenience to litigants.
The message from the apex court was unequivocal: if RERA cannot deliver accountability and timely relief, its existence itself may warrant reconsideration.