Responding to recent observations by the Chief Justice of India questioning the effectiveness of the Real Estate (Regulation and Development) Act, 2016, Adv. Shirish V. Deshpande has said the remarks should be treated as a wake-up call rather than a call for abolition.
The Supreme Court bench reportedly noted that RERA appears to be favouring defaulting builders instead of safeguarding homebuyers, citing delays in dispute resolution, weak enforcement, and concerns over bias. Deshpande acknowledged that the court’s comments reflect genuine issues experienced by homebuyers, particularly in Maharashtra. He said the observations warrant urgent introspection by RERA authorities and the Ministry of Housing and Urban Affairs.
However, he disagreed with the idea of scrapping the law. According to him, the Real Estate (Regulation and Development) Act, 2016 introduced crucial safeguards, including mandatory registration of projects with state regulators, thereby improving transparency and accountability in the sector. Removing the framework would dilute these protections and embolden errant developers.
Deshpande also highlighted interpretational concerns. He pointed to how MahaRERA applied Section 3(2)(a) to exempt large high-rise projects built on plots under 500 square metres, arguing that such readings undermine legislative intent. He further flagged the exclusion of rehabilitation components in redevelopment projects from RERA’s purview, especially when sale components are involved.
He said these issues were raised at a recent real estate conclave attended by the Union housing minister, who indicated openness to reforms. The solution, Deshpande emphasised, lies in correcting implementation gaps and enforcing RERA in both letter and spirit, not dismantling it.
Source: The Free Press Journal
