The Supreme Court raised serious concerns over RERA’s functioning, stating it mainly supports defaulting builders instead of protecting homebuyers, as CJI Surya Kant urged States to reconsider the authority’s purpose and even suggested abolishing the institution.
NEW DELHI: The Supreme Court expressed serious concerns regarding the effectiveness of real estate regulatory authorities, suggesting that they should be abolished because they primarily assist builders.
A Bench comprising Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi stated that States need to reconsider the purpose behind the establishment of the Real Estate Regulatory Authority (RERA).
CJI Kant remarked,
“All States should now think of the people for whom the institution of RERA was created. Except facilitating builders in default, it is not doing anything else. Better to just abolish this institution,”
This observation was made during the hearing of an appeal contesting the Himachal Pradesh High Court’s decision to stay a government notification regarding the relocation of the State RERA office to Dharamshala.
In a previous order, the High Court had noted that the decision to move the RERA office was made “without even identifying the alternative office place.”
The court stated,
“We are of the considered opinion that the Notification dated 13.06.2025 shall remain stayed till further order, and the subsequent order directing the adjustment of 18 outsourced employees in other Boards and Corporations would render the functioning of RERA defunct.”
Today, the Supreme Court intervened in the High Court’s order and allowed the State to transfer the RERA office from Shimla to Dharamshala. The Court also instructed the relocation of the appellate tribunal.
The Bench directed,
“With a view to ensure that persons affected by RERA orders are not inconvenienced, the principal appellate is also moved to Dharamshala,”
Senior Advocate Madhavi Divan represented the State in these proceedings.
In a related matter, the Supreme Court had previously overturned a High Court stay that prevented the relocation of the headquarters of the Himachal Pradesh Commission for Backward Classes from Shimla to Dharamshala.
CASE TITLE: State of Himachal Pradesh vs. Naresh Sharma.
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