The Supreme Court on Thursday made scathing remarks on the functioning of Real Estate Regulatory Authorities (RERA), observing that it may be better to abolish the institution as it appears to benefit builders rather than homebuyers. During the proceedings, Chief Justice of India (CJI) Surya Kant questioned the effectiveness of RERA and expressed concern over its functioning.
‘It Only Benefits Builders’
The CJI remarked that the institution seems to be serving the interests of builders.
“It is doing nothing but providing convenience to defaulting builders,” the CJI observed, adding that it might be better to abolish the institution altogether.
The court further stated that all states should now consider the interests of the people for whom the RERA institution was originally created.
SC on RERA Office Shift in Himachal Pradesh
The Supreme Court also commented on the stay imposed by the High Court on a notification shifting the RERA office to Dharamshala in Himachal Pradesh.
The apex court has stayed the High Court’s order that had earlier stayed the notification.
What is the matter?
The case concerns the transfer of the RERA office from Shimla to Dharamshala in Himachal Pradesh. The state government issued a notification on this matter, which the High Court stayed. The High Court believed that, without alternative arrangements, this move could affect the institution's operations. However, the Supreme Court intervened in the High Court's order, allowing the state government to transfer the office. It also directed that the functioning of both RERA and its Appellate Tribunal should not be affected and that pending cases should continue to be heard regularly.
Concerns over the buyer's problems
During the hearing, the court also emphasised that RERA's purpose was to provide timely justice and transparency to homebuyers. However, on the ground, many buyers complain of having to wait for years without receiving substantial relief.
