The Hon'ble Supreme Court of India recently made sharp observations about the functioning of Real Estate Regulatory Authorities across the country, remarking that if the institution continues to serve defaulting builders rather than protecting homebuyers, it may be "better to abolish" it altogether. These observations came from a bench of the Chief Justice of India while hearing a matter related to the administrative functioning of the Himachal Pradesh RERA.
These were observations made in the course of a hearing — not a final judgment altering the law. But they are significant, because they reflect a growing judicial concern about the gap between what RERA was designed to do and how it is actually functioning on the ground in many states.
For homebuyers in Rajasthan — particularly those who have paid for flats, have been waiting for possession, or are dealing with builder defaults — this is worth understanding clearly.
What RERA Was Designed to Do
The Real Estate (Regulation and Development) Act, 2016 was enacted specifically to address the imbalance between builders and buyers in India's real estate sector. Before RERA, homebuyers had very limited legal remedies — civil suits that took years, consumer complaints with uncertain outcomes, and virtually no mechanism to hold builders accountable for project delays or misrepresentation.
RERA created a specialized regulatory framework with three core protections for buyers:
- Section 18: A builder who fails to hand over possession by the agreed date is liable to pay interest to the buyer for every month of delay — calculated at the rate prescribed under the Rules.
- Section 19: The buyer has a right to information about the project — sanctioned plans, layout, specifications — and can seek documents relating to the project at any stage.
- Section 31: Any aggrieved person — including a homebuyer — can file a complaint before the RERA Authority against the promoter for any violation of the Act or the terms of the agreement for sale.
The Hon'ble Supreme Court has consistently held that RERA is a buyer-protective statute and must be interpreted liberally in favour of homebuyers and strictly against builders in cases of ambiguity.
The Reality on the Ground — and What the Court's Remarks Mean
The Court's observations acknowledge what many homebuyers and their lawyers already know: RERA Authorities in several states have been slow to enforce their own orders, have been understaffed, and have — in practice — allowed defaulting builders to continue operating without meaningful consequences.
An order from RERA directing a builder to pay interest, or to complete a project, or to refund a buyer is only as good as its enforcement. Under Section 40 of the RERA Act, RERA orders are enforceable through the District Collector as arrears of land revenue — a powerful mechanism when actually used. In practice, the record of recovery is uneven.
The Court's criticism is directed at RERA's administration and enforcement — not at the rights the Act confers on buyers. Those rights remain intact and enforceable. The challenge is ensuring that orders obtained are actually executed.
Your Remedies as a Homebuyer in Rajasthan
If your builder is delaying possession, has made misrepresentations, has not registered the project, or has violated the terms of the agreement for sale, the following remedies are available:
RERA Complaint
File before the Rajasthan Real Estate Regulatory Authority. This is the primary forum for possession delays, interest claims, and builder violations.
REAT Appeal
The Rajasthan Real Estate Appellate Tribunal hears appeals against RERA Authority orders. If the Authority's relief is inadequate, REAT is the next step.
Consumer Forum
May be available depending on your specific facts. Particularly relevant for deficiency in service claims, misrepresentation, and compensation for mental agony.
Recovery Certificate
Once a RERA order is passed, apply for a Recovery Certificate to the District Collector — this triggers revenue recovery proceedings against the builder.
If You Are a Homebuyer — What to Do Right Now
Practical Steps
Gather your documents: Agreement for sale, allotment letter, all payment receipts, any correspondence with the builder, brochures, and the builder's registered RERA project number.
Check RERA registration: Go to rera.rajasthan.gov.in and verify that your project is registered. An unregistered project is itself a violation under Section 3 of the RERA Act.
Calculate your interest claim: Under Section 18, you are entitled to interest at the prescribed rate for every month of delay from the promised possession date. This amount can be substantial over years of delay.
Choose your forum carefully: RERA and consumer forums can sometimes both be available for the same grievance, but switching forums after already invoking one for the same cause of action can create complications. Take legal advice before deciding.
File promptly: Limitation periods apply. Do not allow years to pass hoping the builder will eventually deliver — file a complaint at the earliest appropriate stage.
RERA's effectiveness as an institution depends significantly on how well homebuyers assert their rights within it — and on the quality of legal representation they bring to those proceedings. The law is clear. The remedies exist. The challenge is using them correctly and persistently.