Homebuyer forum asks PM Modi to replace RERA with a new homebuyer protection law

The Real Estate (Regulation and Development) Act, 2016, or RERA, is about to complete 10 years. Marking the occasion, the Forum for People's Collective Efforts (FPCE) has demanded major changes to the law. The forum alleges that the Act's main aim of protecting homebuyers has largely not been met.

FPCE president Abhay Upadhyay has sent a memorandum to Prime Minister Narendra Modi. According to him, a number of regulatory failures and institutional weaknesses have left the law ineffective. The forum has asked the Centre to replace RERA with a separate "Real Estate Homebuyer Protection Act", with greater emphasis on builders' accountability and the redress of complaints.

FPCE acknowledged that RERA brought many real estate projects into a formal registration system. But it said registration alone does not help families whose savings are stuck in stalled projects.

The forum has prepared a 192-page report titled "RERA Extension Abuse: How Regulatory Failure Is Betraying India's Homebuyers". In it, FPCE estimates that Rs 12.44 lakh crore is stuck in delayed housing projects across seven states, affecting about 27.6 lakh families. The report examined government data from Haryana, Karnataka, Maharashtra, Uttar Pradesh, West Bengal, Tamil Nadu and Telangana. According to the forum, the amount is roughly 3.8 per cent of the country's annual GDP.

FPCE alleges that many problems persist even after RERA. These include diversion of project funds, violation of construction-linked payment schedules, arbitrary extension of project deadlines, and handing over possession without the required occupancy certificate. The forum also said it had submitted the report to the Ministry of Housing and Urban Affairs but did not receive a formal acknowledgement.

The memorandum also cites Supreme Court observations. According to FPCE, a Bench of Justice Surya Kant and Justice Ujjal Bhuyan allegedly said in September 2024 that RERA tribunals had become "rehabilitation centres for retired bureaucrats", who had defeated the entire scheme of the law. The forum also referred to remarks by Chief Justice of India Surya Kant on February 12, 2026, in State of Himachal Pradesh v. Naresh Sharma. According to FPCE, the court criticised the institution for failing to give homebuyers effective relief and questioned its usefulness in its present form.

The forum says the core of its criticism is a structural conflict within the law. It says a RERA authority is expected both to promote the real estate sector and to regulate it, and that these responsibilities clash. The forum also said RERA authorities have no direct control over local building approvals, stamp duty and completion certificates. These rest with state-level agencies such as the Mumbai Metropolitan Region Development Authority (MMRDA), NOIDA and the Chennai Metropolitan Development Authority (CMDA). FPCE alleges that this arrangement gives the authorities considerable latitude, while homebuyers keep running from pillar to post for refunds, compensation and enforcement of orders. The forum also compared the extensions given to developers during the Covid-19 pandemic and the 2026 West Asia crisis with the delays faced by buyers seeking relief.

FPCE has made four main demands. First, promotion and regulation should be separated, with the promotion of real estate handed to development ministries and urban agencies. Second, RERA should be renamed and re-enacted as the "Real Estate Homebuyer Protection Act". Third, administration of the law should move from housing bodies to a consumer protection framework, such as the Department of Consumer Affairs. Fourth, there should be stiff penalties for authorities and chairpersons who do not enforce orders, routinely grant project extensions or ignore developers' repeated defaults.

FPCE said restoring homebuyers' trust is essential for the long-term growth of the real estate sector. According to the forum, regulatory reforms must put consumer protection and accountability above all else.