Registration alone can’t be measure of success: Homebuyers forum to PM Modi on 10 years of RERA

A homebuyers' forum has written to India's Prime Minister Narendra Modi, expressing concern over the Real Estate (Regulation and Development) Act's (RERA) failure to address malpractices 10 years since its enactment. The Forum for People's Collective Efforts (FPCE) claimed the law has only succeeded in registering more projects, but "objectives were far from being achieved."

The main issue, according to the FPCE, lies with the conflicting responsibilities of the Real Estate Regulatory Authority (RERA) set up in 2016. The forum suggested changing RERA's mandate, giving the Ministry of Housing and Urban Affairs the responsibility of promoting the sector, while entrusting the Department of Consumer Affairs with the sole duty of protecting homebuyers' interests.

FPCE president Abhay Upadhyay wrote in the letter that "registration and disclosure alone cannot be the measure of success when violations continue and homebuyers struggle to obtain effective remedies." The forum highlighted concerns over projects being registered without necessary documents and proper scrutiny, leading to delays in refunds to homebuyers.

They also pointed out the one-sided nature of contracts between builders and buyers, with no improvement after raising the issue at a CAC meeting in 2023. The forum cited a report estimating that about Rs. 12.44 lakh crore of homebuyers' money, accounting for 3.8% of India's annual GDP, is trapped in delayed projects, affecting around 27.6 lakh families.

This issue goes beyond individual homebuyers waiting for possession, as it impacts household savings, financial institutions, consumption, employment, investment, and the overall confidence in the sector.