Activists seek Rera overhaul after SC’s sharp remarks

Pune: Citizen activists renewed calls for a comprehensive review of the implementation of the Real Estate (Regulation and Development) Act after the Supreme Court on Thursday made strong observations on the functioning of real estate regulatory authorities across states. Activists said thousands of homebuyers remain stuck with cases pending for years or await execution of recovery warrants owing to weak enforcement. They said the court's remarks also underlined the need to rethink appointments to Rera bodies, arguing that merely appointing retired officials serves little purpose unless those appointed have the authority, expertise, and administrative capacity to ensure effective execution of orders.
A bench of Justice Surya Kant and Justice Joymalya Bagchi said it was "high time" states revisited and rethought the very constitution of the Real Estate Regulatory Authority, observing that it appeared to be doing little beyond "facilitating defaulting builders" and expressing concern over the institution's functioning. When asked about reviewing appointments, chief minister Devendra Fadnavis said he was yet to see the order and would comment only after receiving it in writing, adding that it would be wrong to react based on media reports. "If something comes in writing, I will study. It would be wrong to say anything based on media reports," he told TOI. Rera consultant Sanjiv Brar said the strong and critical observations made by the Supreme Court were a true reflection of the ineffectiveness of the Rera Act, 2016. "The homebuyer is at a clear disadvantage, despite being one of the most important creditors in any real estate project. Data showed that over 77% of an average Indian household's assets are held in real estate, making it the single largest lifetime investment for most individuals. A buyer not only borrows heavily to purchase a home but also effectively acts as a financier, as builders collect large sums upfront. This dual burden places the buyer in an extremely vulnerable position, making him the weakest stakeholder despite his high financial exposure," he said. Brar said that a close relative of his was still awaiting recovery from a developer who failed to complete the project. "The revenue department was not able to carry out the recovery warrant order, and the case continues to be pending," he added. He also pointed out that the state earlier had a stronger deterrent under the Maharashtra Ownership Flats Act, 1963. "Section 13(1) provided for imprisonment of up to three years, or a fine, or both, for builders who violated key provisions of the Act. However, the builder lobby, led by Credai, pressed the Maharashtra govt to repeal this section. The govt, disregarding the plight of thousands of homebuyers, obliged —granting builders enormous relief. With the removal of criminal liability, there is now no check, no deterrence, and no accountability. Builders can openly flout the law with impunity." Godfrey Pimenta of Watchdog Foundation said considering the large number of pending cases under MahaRERA the Act became ineffective in curbing the conduct of defaulting developers. "Despite the passing of orders, there is lax enforcement, resulting in flat buyers getting frustrated," he said. Activist Vijay Kumbhar said Rera failed not because the law is weak but because the system implementing it is. "There needs to be a check on the appointment of retired bureaucrats as chairpersons. They treat Rera as routine paperwork, no urgency is shown, and there is zero accountability. Officers should be held accountable for enforcement," he added. Get the latest lifestyle updates on Times of India, along with Valentine's day wishes, messages and quotes !