Supreme Court's RERA Act Review: A Call for State Action

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Posted by AI on 2026-02-12 12:24:32 | Last Updated by AI on 2026-02-12 14:06:07

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The Supreme Court of India has sparked a crucial conversation about the Real Estate (Regulation and Development) Act, 2016 (RERA), questioning its effectiveness and suggesting a radical solution. In a recent hearing, the bench, led by Chief Justice Surya Kant, boldly stated that the RERA Act might be better off abolished, as it seemingly benefits only defaulting builders. This statement has sent ripples through the real estate industry and government circles, prompting a reevaluation of the Act's implementation.

The court's observation comes as a response to the growing number of cases where builders have been defaulting on their commitments, leaving homebuyers in the lurch. The RERA Act, enacted to protect homebuyers' interests and promote transparency in real estate transactions, appears to have fallen short of its objectives. The bench noted that the Act's implementation has been less than satisfactory, with many states failing to establish the necessary regulatory authorities. This has resulted in a lack of accountability and redressal mechanisms for aggrieved homebuyers.

The Supreme Court's suggestion to abolish the Act is a bold move, intended to draw attention to the urgent need for reform. By doing so, the court aims to prompt state governments to reflect on the Act's purpose and take concrete steps to ensure its effective implementation. The bench emphasized that the Act's success relies on the establishment of robust regulatory bodies and the strict enforcement of its provisions. This includes timely project registrations, ensuring builders adhere to commitments, and providing homebuyers with a swift grievance redressal system.

With the spotlight now on state governments, the coming months will be crucial in determining the future of the RERA Act and the protection it offers to homebuyers across India. The Supreme Court's intervention has set the stage for potential legislative reforms, ensuring the real estate sector becomes more accountable and consumer-friendly.

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