Supreme Court Criticizes RERA: A Disappointing Reality

The Supreme Court criticized the Real Estate Regulatory Authority's functioning, deeming it 'disappointing.' A plea highlighted the RERA Act's inadequate implementation, causing a domino effect on the real estate sector. Calls for intervention in strengthening regulatory mechanisms were made to protect stakeholders affected by project failures.

The Supreme Court has expressed strong criticism towards the Real Estate Regulatory Authority (RERA), describing its performance as 'disappointing.' During a hearing, a bench of Justices Surya Kant and N. Kotiswar Singh heard claims from senior advocate K. Parameshwar that the RERA Act has failed in its implementation.

Parameshwar explained that a 'domino effect' is plaguing the real estate sector, where the failure of one builder's project leads to the collapse of others, leaving the courts unable to resolve the resulting issues. He was particularly concerned about how failures affect various stakeholders, and he urged the court to further strengthen regulatory mechanisms.

Despite Justice Surya Kant agreeing that the regulatory authority's current state was indeed disappointing, he noted that states might resist new regulatory enhancements. The Real Estate (Regulation and Development) Act of 2016 was meant to safeguard home buyers' investments in housing projects but appears to be falling short.