Is RERA failing homebuyers? Supreme Court flags builder bias, corruption and seeks answers

Top court expresses serious concern over RERA functioning, says authorities favour builders, fail to protect homebuyers, and calls for urgent review by all state governments.

The Supreme Court has raised serious concerns over the functioning of Real Estate Regulatory Authorities (RERA) across states, questioning whether these bodies exist to safeguard homebuyers or to serve the interests of builders. The court’s sharp observations came during the hearing of a case from Himachal Pradesh.

A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi expressed strong dissatisfaction with the working style of state RERA authorities. The court noted that RERA institutions, which were created to protect consumers and bring transparency to the real estate sector, appear to be functioning in favour of builders rather than homebuyers.

The bench observed that people across the country have become deeply frustrated with RERA due to delays, lack of accountability, and failure to resolve complaints. It pointed out that RERA authorities seem to be doing nothing beyond facilitating builders and developers.

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The Supreme Court stated that it had no objection to shutting down RERA bodies if they continue to fail in their duties. It further said that all state governments must urgently re-evaluate the need, role, and functioning of RERA institutions. The court questioned whether RERA is serving public interest or merely protecting the builder lobby.

Highlighting widespread dissatisfaction, the court remarked that RERA’s present functioning defeats the very purpose of its creation. It stressed that the time has come for governments to reconsider whether these authorities are truly benefiting homebuyers.

Serious Allegations Against Karnataka RERA (K-RERA):

NewsFirst had earlier broadcast multiple reports exposing alleged irregularities and corruption within Karnataka RERA (K-RERA). According to investigations, K-RERA has failed to act in favour of buyers and has instead sided with builders, causing distress among flat and plot purchasers.

Despite thousands of registered complaints, a large number of cases remain unresolved. Buyers allege that even when penalties are imposed, authorities fail to ensure recovery or compensation. Builders often escape action for project delays, failure to hand over flats on time, and non-compliance with approved plans.

Also Read:K-RERA under fire: 2,000+ cases pending, ₹750 crore recovery stuck

Bribery, Illegal Approvals and Systemic Misuse:

Several serious allegations have surfaced regarding corruption within K-RERA. These include:

•    Fixed commission rates for approving projects
•    Bribes allegedly collected based on square footage and number of flats
•    Fast-track approvals for developers who pay bribes
•    Relaxation of strict norms in exchange for illegal payments
•    Approval for projects of defaulting developers
•    Permission for sale and advance booking of unregistered sites
•    Approval of projects without Joint Development Agreements (JDA)
•    Lack of action on delayed projects and unpaid buyer compensation
•    Failure to collect penalties and monitor compliance

The reports suggest that corruption within RERA has caused severe financial and emotional distress to thousands of homebuyers.

The Supreme Court’s observations indicate that the days of RERA, in its present form, may be numbered. The court has clearly conveyed that unless these authorities reform themselves and start working strictly in favour of consumers, shutting them down remains a serious option.