Personal Finance

SC Flags Concerns Over RERA Functioning, Says States May Need To Take Stock

The Real Estate (Regulation and Development) Act, 2016 was enacted to clean up the real estate sector give and give homebuyers a proper place to raise their grievances. The Supreme Court recently raised concerns over Rera’s functioning in different states during a hearing related to the Himachal Pradesh government’s recent decision to shift the Rera office from state capital Shimla to Dharamshala which the High Court of Himachal Pradesh had stayed after a public interest petition raised concerns about accessibility and possible disruption to ongoing work

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Summary of this article

  • Supreme Court questions RERA effectiveness, seeks stronger homebuyer protection

  • RERA delays and enforcement gaps affect homebuyer relief across states

  • Himachal RERA office shift case triggered broader regulatory scrutiny

  • Consistent real estate regulation key for buyer confidence, market stability

The Supreme Court (SC) has raised concerns about how Real Estate Regulatory Authorities (RERA) are functioning in different states, suggesting governments may need to reassess whether these bodies are consistently delivering relief to homebuyers. The observation came up during a hearing related to the Himachal Pradesh government’s plan to shift its RERA office from Shimla to Dharamshala.

The Real Estate (Regulation and Development) Act, 2016 was enacted to clean up the real estate sector and give homebuyers a proper place to raise their grievances. The framework has helped in several cases, but the experience has not been uniform. In some states, buyers still complain about delays in getting complaints heard or orders enforced.

Homebuyer Relief At Core Of Debate

During the hearing, Chief Justice of India Surya Kant stressed that the law was meant first and foremost to protect homebuyers. The court indicated that if regulatory bodies are not consistently meeting that objective, states may have to review administrative capacity, staffing, and enforcement processes, LiveLaw reported.

5 February 2026

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For buyers stuck with delayed projects, the financial strain can pile up quickly. Many end up paying both rent and home loan EMIs at the same time. People tracking the sector often point to limited staff, slow processes, and patchy enforcement as reasons some RERA offices struggle to keep pace.

Himachal Office Shift Brings Issue To Fore

The immediate case before the court concerned the Himachal Pradesh government’s decision to move its RERA office from Shimla to Dharamshala. The state High Court had earlier stayed the move after a public interest petition raised concerns about accessibility and possible disruption to ongoing work.

Shimla remains an important centre for real estate activity in the state, and some stakeholders argued the relocation could make interaction with the regulator less convenient. There were also questions about administrative preparedness during the transition.

The SC has, for now, stayed the High Court order, effectively allowing the relocation to go ahead. Even so, the larger discussion about how effectively RERA authorities are functioning ended up drawing more attention than the relocation issue itself.

According to the report, the court’s remarks may reopen discussions on strengthening real estate regulation. For many people looking to buy a home, especially in projects still under construction, how strongly the rules are enforced can influence whether they go ahead with the purchase.

Developers also tend to prefer clear, predictable regulation, as it helps avoid disputes and keeps investor sentiment steady.