The Supreme Court has expressed strong disapproval of the Real Estate Regulatory Authority (RERA) in various states, stating that governments need to reconsider establishing the regulatory body. Chief Justice of India Surya Kant and Justice Joymalya Bagchi made these remarks during a hearing on a special leave petition filed by the Himachal Pradesh government. The court observed that RERA seemed to be favoring builders rather than serving its intended purpose of protecting homebuyers.
The Bench highlighted that RERA’s actions appeared to primarily benefit defaulting builders, leaving homebuyers feeling disappointed and frustrated. The regulatory framework, designed to safeguard homebuyers’ interests, seemed to have failed in its objectives. Senior advocate Madhavi Divan, representing the Himachal Pradesh government, raised concerns about a public interest litigation filed by a property dealer before the High Court, questioning the petitioner’s credentials.
During the proceedings, arguments were presented against relocating the RERA office from Shimla to Dharamsala, citing inconvenience to stakeholders based in Shimla. The majority of properties and complaints under RERA were concentrated in Shimla, making the proposed shift to Dharamsala contentious. Additionally, delays in appointing a Chairperson to the regulator were also highlighted as a pressing issue.
Following the submissions, the Supreme Court stayed the Himachal Pradesh High Court’s order and allowed the state government to proceed with relocating the RERA office from Shimla to Dharamsala, including the transfer of the appellate tribunal.
