Supreme Court questions RERA’s effectiveness

The Supreme Court of India criticised the functioning of Real Estate Regulatory Authority, saying it was high time governments revisited RERA’s role. The court stayed the Himachal Pradesh High Court order blocking the office shift from Shimla to Dharamsala

New Delhi: The Supreme Court has orally expressed strong disapproval over the functioning of the Real Estate Regulatory Authority (RERA) in several states, remarking that it was ‘high time’ that the governments revisited their decision to constitute the regulatory body.

The observation came from a Bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi as it heard a special leave petition (SLP) filed by the Himachal Pradesh government challenging an order of the HP High Court, which had stayed the decision to shift the RERA office from Shimla to Dharamsala.

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During the hearing, the CJI Kant-led Bench remarked that RERA was “not doing any other service except facilitating builders in default”, and said that the very purpose for which the authority was created appeared to have been defeated.

It further remarked that homebuyers — for whose protection the regulatory framework was established — were feeling ‘completely disappointed and frustrated.’

Senior advocate Madhavi Divan, appearing for the Himachal Pradesh government, submitted that the public interest litigation (PIL) before the High Court has been filed by a property dealer. She argued that the Himachal Pradesh High Court ought to have examined the credentials of the petitioner before passing interim orders.

On the other hand, counsel opposing the transfer contended that a majority of stakeholders were based in Shimla and that shifting the office to Dharamsala would cause inconvenience. It was argued that nearly 90 per cent of the properties and complaints under RERA were located in Shimla, whereas Dharamsala accounted for a much smaller share.

Further, concerns were also raised about delays in appointing a Chairperson to the regulator. After hearing the submissions, the Supreme Court stayed the Himachal Pradesh High Court’s order and permitted the state government to proceed with shifting the RERA office from Shimla to Dharamsala. It also allowed the transfer of the appellate tribunal.