RERA Turns 10, Forum Seeks Overhaul of Buyer Protection

As RERA completes 10 years in 2026, the Forum for People's Collective Efforts (FPCE) has urged the Centre to overhaul the law and transform it into a dedicated homebuyer protection legislation.

RERA turns 10, forum seeks overhaul of buyer protection. (Image for representational purpose only)

PROPERTY PULSE

The Forum for People's Collective Efforts (FPCE) has urged the Centre to overhaul the Real Estate (Regulation and Development) Act, 2016 (RERA), and transform it into a dedicated homebuyer protection law.

In a letter to Prime Minister Narendra Modi, the organisation has called for separating consumer protection from real estate sector promotion, strengthening regulatory accountability and ensuring faster enforcement of orders.

The appeal comes as RERA completes a decade in 2026. While the law has improved project registration and information disclosure, FPCE said homebuyers continue to face delayed possession, diversion of funds, one-sided sale agreements and prolonged waits for refunds and compensation.

It argued that registration and disclosure alone have not translated into effective protection. FPCE said assigning the promotion of real estate growth and protection of homebuyers to the same regulatory framework creates a potential conflict of interest.

It alleged that project registrations and sector development have received greater attention than grievance redressal, action against defaulting developers and enforcement of compensation orders. The organisation has proposed renaming and restructuring RERA as the Real Estate Homebuyers Protection Act and placing it under a Central Government department primarily responsible for consumer protection, such as the Department of Consumer Affairs.

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₹12.44 Lakh Crore Stuck in Delayed Projects

FPCE cited a 192-page report based on official data from RERA authorities in seven states, which estimates that around ₹12.44 lakh crore of homebuyers' money is locked in delayed real estate projects. The amount represents nearly 3.8 per cent of India's GDP and affects an estimated 27.6 lakh families, according to the organisation.

The financial impact extends beyond delayed possession. FPCE said the blockage of household savings affects consumption, investment, employment, financial institutions and confidence in the property market.

It also flagged shortcomings in the scrutiny of project documents, approved building plans, promised amenities, developer declarations and sale agreements. Other concerns include unauthorised changes to plans, undisclosed charges, possession without Occupancy Certificates and delays in implementing regulatory orders.

FPCE questioned blanket extensions granted to developers during the COVID-19 pandemic and amid the West Asian crisis. It argued that extensions should be assessed on a project-by-project basis, taking into account the reasons for delay, the developer's performance and the interests of buyers. The organisation said homebuyers did not receive comparable relief.