‘Better abolish them’: Supreme Court says RERA does nothing, only helps defaulting builders

The Supreme Court came down heavily on the Real Estate Regulatory Authority (RERA), and criticised it for not serving any valuable purpose for homebuyers. The apex court said it was high time all states re-thought the constitution of RERA.

A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi said people were "completely depressed, disgusted and disappointed" and said it should be abolished. "Except facilitating the builders in default, this institution is doing nothing. Better abolish this institution, we don't mind that," the CJI said, adding that it’s "high time that all the states should revisit and rethink of even constituting this authority.”

"The people for whom this institution was created are completely depressed, disgusted and disappointed. None of them are getting any effective relief. For whom this institution actually is now serving, you will find out when you meet these people," the CJI said.

WHAT IS THE RERA ISSUE? 

The Supreme Court allowed the Himachal Pradesh government to move the RERA office from Shimla to a location of its choice, pending the final decision of the high court. The bench issued notice on the government's plea challenging a high court order that had stayed a June 2025 notification regarding the shift.

The high court had earlier extended its interim stay on the relocation through an order dated December 30, 2025. The apex court has now stayed this direction but clarified that the move remains subject to the writ petition pending before the high court.

The state government, represented by advocate Sugandha Anand, justified the decision to shift the RERA office citing the need to decongest Shimla and described the rationale as administrative. The bench observed that Shimla is completely exhausted. Senior advocate Madhavi Divan, appearing for the state, stated that the RERA office is sought to be shifted to Dharamshala.

An advocate for the respondent argued that 90 per cent of the projects managed by the authority are located in Shimla, Solan, Parwanoo, and Sirmaur, all within a 40 km radius, and that approximately 92 per cent of complaints before RERA originate from these districts. There are only 20 projects in Dharamshala.

Upon learning that a retired IAS officer had been appointed to RERA, the Chief Justice of India remarked that in every state these authorities have become rehabilitation centres occupied by such persons. The CJI questioned the suitability of such appointments and suggested that environment-friendly architects familiar with the region would be more helpful.
To address concerns about inconvenience for affected persons who might need to file appeals, the bench directed that appellate power may be shifted from the principal district judge, Shimla, to the principal district judge of Dharamshala.

On February 9, in a separate matter, the Supreme Court set aside an interim order of the Himachal Pradesh High Court that had stayed the state's decision to relocate the OBC commission from Shimla to Dharamshala. The court affirmed that such administrative decisions generally fall outside the judicial domain.