Rera only facilitating builders in default: SC

NEW DELHI: Supreme Court on Thursday said it is high time all states rethought the constitution of the real estate regulatory authority (Rera) as the institution is doing nothing except “facilitating” defaulting builders.

A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi said the people for whom Rera was created were “completely disappointed”. “Better abolish this institution, we don’t mind that,” the CJI said. The observations came as the bench permitted the Himachal govt to shift the Rera office to a place of its choice.

“...High time that all the states should revisit and rethink of even constituting this authority,” the bench said.




When the bench was informed that a retired IAS officer was appointed in Rera, the CJI said, “In every state, it has become a rehabilitation centre. These authorities are all occupied by these persons.”

The advocate general of Himachal told the bench that, as per a policy decision, the state is developing Palampur, Dharamshala and other cities.

The CJI asked, “What is the logic of having a retired bureaucrat? How he will be able to help in developing Palampur? You need to avail services of some architect who is environment friendly, knows Palampur, Dharamshala and these areas. Only those persons will help”.

The bench issued notice on a plea filed by Himachal Pradesh govt and others challenging an order of the high court in a matter pertaining to the shifting of the state Rera office from Shimla to Dharamshala. The HC had earlier stayed a June 2025 notification concerning the shifting of the Rera office till further order. Later, in its order on Dec 30, 2025, the court directed the continuance of the interim order. The top court stayed the HC’s Dec 30 direction.

In its plea filed in the top court through advocate Sugandha Anand, the state said the decision to shift the office was taken to “decongest” Shimla, and it was purely on administrative considerations. An advocate, appearing for the respondent, said 90% of the projects with which the authority deals are in Shimla, Solan, Parwanoo and Sirmaur, which are within a radius of a maximum of 40km. He said about 92% of complaints pending before Rera are from these districts; only 20 projects are in Dharamshala.

“The people for whom this institution was created, they are completely depressed, disgusted and disappointed. None of them are getting any effective relief. For whom this institution actually is now serving, you will find out when you meet these people,” the bench said.

The top court also observed that Shimla is “completely over exhausted”. Issuing notice on the plea, the bench said, “The state is permitted to shift the office of Rera to the place of its choice. However, it shall be subject to the final outcome of the writ petition pending before the high court”.

The bench was also informed that Shimla district judge hears appeals against the orders passed by Rera. To ensure those affected by the orders of Rera do not face any inconvenience visiting Shimla for filing appeals, it is directed that appellate power may be shifted to principal district judge of Dharamshala, the bench said.
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