02 November,2026 04:20 PM IST | Mumbai | Vinod Kumar Menon
FPCE alleged that several problems continued despite the introduction of RERA. Representational Pic/File
As the Real Estate (Regulation and Development) Act, 2016 (RERA) approaches its 10-year milestone, the Forum for People's Collective Efforts (FPCE) has called for a major overhaul of the law, alleging that its key objective of protecting homebuyers remains largely unfulfilled.
In a representation addressed to Prime Minister Narendra Modi, FPCE president Abhay Upadhyay said widespread regulatory failures and institutional shortcomings had weakened the effectiveness of the legislation. The forum has urged the Centre to transform RERA into a dedicated Real Estate Homebuyer Protection Act, with a stronger focus on promoter accountability and grievance redressal.
While acknowledging that RERA had brought several real estate projects under a formal registration system, FPCE said registration alone offered little relief to families whose savings remained locked in delayed projects.
In its 192-page report titled RERA Extension Abuse: How Regulatory Failure Is Betraying India's Homebuyers, FPCE estimated that Rs 12.44 lakh crore was trapped in delayed housing projects across seven states, affecting approximately 27.6 lakh families.
The report analysed official data from Haryana, Karnataka, Maharashtra, Uttar Pradesh, West Bengal, Tamil Nadu and Telangana. According to the forum, the amount represents around 3.8 per cent of India's annual GDP.
FPCE president Abhay Upadhyay. Pic/Special Arrangement
FPCE alleged that several problems continued despite the introduction of RERA, including the diversion of project funds, violations of construction-linked payment schedules, arbitrary extensions of project deadlines and handing over possession without mandatory occupancy certificates.
The forum also said it had submitted the report to the Ministry of Housing and Urban Affairs but had not received a formal acknowledgement.
The representation also referred to observations made by the Supreme Court about the functioning of RERA authorities.
FPCE cited remarks made by a Bench of Justices Surya Kant and Ujjal Bhuyan in September 2024, which reportedly described RERA benches as having become "rehabilitation centers for former bureaucrats who have frustrated the entire scheme of the Act".
The forum also referred to observations made by Chief Justice of India Surya Kant on February 12, 2026, in State of Himachal Pradesh v. Naresh Sharma.
According to FPCE, the court criticised the institution for failing to provide effective relief to homebuyers and questioned its usefulness in its existing form.
At the heart of FPCE's criticism is what it describes as a structural conflict within the legislation. The forum argued that RERA authorities are expected to both promote the real estate sector and regulate it, creating conflicting responsibilities.
It also pointed out that RERA authorities do not directly control local building approvals, stamp duty or completion certificates, which fall under state-level development agencies such as the Mumbai Metropolitan Region Development Authority (MMRDA), NOIDA and the Chennai Metropolitan Development Authority (CMDA).
FPCE alleged that this arrangement gives regulatory authorities considerable discretion while leaving homebuyers struggling to secure refunds, compensation and enforcement of orders.
The forum also questioned the contrast between project extensions granted to developers during the Covid-19 pandemic and the 2026 West Asia crisis and the delays faced by homebuyers seeking relief.
FPCE has proposed a series of changes to strengthen the law and improve protection for homebuyers.
Its demands include:
- Separate promotion from regulation: Remove real estate promotion responsibilities from the consumer-facing regulatory law and place them under development ministries and urban agencies.
- Rename and re-enact RERA: Replace the existing framework with a dedicated Real Estate Homebuyer Protection Act.
- Change administrative control: Transfer the administration of the law from housing bodies to a consumer-protection framework, such as the Department of Consumer Affairs.
- Ensure accountability: Introduce strict penalties for regulatory authorities and chairpersons who fail to enforce orders, grant routine project extensions or overlook repeated defaults by developers.
FPCE said restoring homebuyers' confidence was essential for the long-term growth of the real estate sector, arguing that regulatory reforms must prioritise consumer protection and accountability.
