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India's RERA Weak Enforcement Betrays 27.6 Lakh Homebuyers
9 Sep
Summary
- An estimated 27.6 lakh homebuyers have funds trapped in delayed projects.
- Homebuyers' body FPCE states RERA's enforcement, not the law itself, has failed.
- Total sum locked in undelivered projects amounts to Rs 12.44 lakh crore.
The Forum For People's Collective Efforts (FPCE) has highlighted significant failures in the implementation of India's Real Estate (Regulation and Development) Act, 2016 (RERA). An estimated 27.6 lakh homebuyers are currently affected by delayed projects nationwide, with their funds estimated at Rs 12.44 lakh crore locked in these ventures. FPCE's report indicates that the core problem is not the RERA statute but its weak enforcement by state regulatory authorities.
The report criticizes RERA authorities for not scrutinizing statutory conditions before granting project extensions. This has led to delays being regularized rather than addressed, transforming the regulatory process into a mechanism that institutionalizes delays. FPCE President Abhay Upadhyay stated that RERA's enforcement has weakened, betraying the interests of homebuyers who have invested their life savings.
FPCE, a member of the Act's Central Advisory Council, stresses the immediate need for corrective measures to restore RERA's intended discipline and accountability. The association's findings are based on official records, including extension orders and regulatory filings, underscoring the urgency for action to protect homebuyers' shelter and security.
