RERA at 10: FPCE urges PM Modi to overhaul law, claims Rs 12.44 lakh crore trapped in delayed projects

As the Real Estate Regulation and Development Act 2016 RERA approaches its 10year milestone the Forum for Peoples Collective Efforts FPCE has called for a major overhaul of the law alleging that its key objective of protecting homebuyers remains largely unfulfilledIn 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 redressalWhile 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 projectsRs 1244 lakh crore trapped in delayed projectsIn its 192page report titled RERA Extension Abuse How Regulatory Failure Is Betraying Indias Homebuyers FPCE estimated that Rs 1244 lakh crore was trapped in delayed housing projects across seven states affecting approximately 276 lakh familiesThe report analysed official data from Haryana Karnataka Maharashtra Uttar Pradesh West Bengal Tamil Nadu and Telangana According to the forum the amount represents around 38 per cent of Indias annual GDPFPCE president Abhay Upadhyay PicSpecial ArrangementFPCE alleged that several problems continued despite the introduction of RERA including the diversion of project funds violations of constructionlinked payment schedules arbitrary extensions of project deadlines and handing over possession without mandatory occupancy certificatesThe forum also said it had submitted the report to the Ministry of Housing and Urban Affairs but had not received a formal acknowledgementFPCE cites Supreme Courts criticismThe representation also referred to observations made by the Supreme Court about the functioning of RERA authoritiesFPCE 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 ActThe forum also referred to observations made by Chief Justice of India Surya Kant on February 12 2026 in State of Himachal Pradesh v Naresh SharmaAccording to FPCE the court criticised the institution for failing to provide effective relief to homebuyers and questioned its usefulness in its existing formForum flags conflict in RERAs mandateAt the heart of FPCEs 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 responsibilitiesIt also pointed out that RERA authorities do not directly control local building approvals stamp duty or completion certificates which fall under statelevel development agencies such as the Mumbai Metropolitan Region Development Authority MMRDA NOIDA and the Chennai Metropolitan Development Authority CMDAFPCE alleged that this arrangement gives regulatory authorities considerable discretion while leaving homebuyers struggling to secure refunds compensation and enforcement of ordersThe forum also questioned the contrast between project extensions granted to developers during the Covid19 pandemic and the 2026 West Asia crisis and the delays faced by homebuyers seeking reliefFour key demands for reformFPCE has proposed a series of changes to strengthen the law and improve protection for homebuyersIts demands include Separate promotion from regulation Remove real estate promotion responsibilities from the consumerfacing regulatory law and place them under development ministries and urban agencies Rename and reenact 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 consumerprotection 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 developersFPCE said restoring homebuyers confidence was essential for the longterm growth of the real estate sector arguing that regulatory reforms must prioritise consumer protection and accountability