Homebuyer’s Body Urges RERA Law Reforms, Seeks Rules to Verify Developer's Track Record

The Forum for People’s Collective Efforts (FPCE), a national body representing homebuyers, has urged the Union Ministry of Housing and Urban Affairs to introduce crucial amendments to the RERA law. The group believes that while the Real Estate (Regulation and Development) Act, 2016 was enacted to protect consumers, loopholes and weak enforcement have allowed errant developers to continue exploiting buyers.

FPCE has sought new rules that would require authorities to verify a developer’s past record before granting approvals for fresh projects. The association has also demanded stricter measures against builders who fail to deliver promised amenities and greater accountability from state-level regulators.

Why the RERA Law Needs a Rethink

When the RERA law was introduced in 2016, it was hailed as a landmark reform aimed at bringing transparency, accountability, and order to India’s real estate market. It mandated that every housing project be registered with a state RERA authority, ensuring buyers could access verified information about developers and timelines.

However, homebuyers’ associations like FPCE argue that the intent of the law has been diluted in practice. Builders continue to delay projects, divert funds, and flout agreements, often without facing serious repercussions. FPCE says the RERA registration number which was meant to be a mark of assurance has lost its credibility.

According to FPCE president Abhay Upadhyay, “Unlike FSSAI, where the certification itself assures consumers that the product is safe, the RERA registration number has failed to become a symbol of trust.”

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FPCE’s Key Recommendations for Reform

The homebuyers’ body has proposed several structural reforms to strengthen the RERA law and restore faith in the system. Its key recommendations include:

• Verification of developers’ track records before granting new project approvals. Authorities should check whether builders have cleared all dues to previous buyers or complied with past legal orders.
• Mandatory compensation for homebuyers if developers fail to deliver the facilities and amenities promised in project brochures.
• Uniform refund rules for buyer-initiated cancellations, ensuring consistency across states.

FPCE has also called for state RERA authorities to adopt a more proactive approach in investigating complaints and penalizing errant developers, rather than acting as “passive spectators.”

Supreme Court’s Observations on Regulatory Lapses

The RERA law empowers regulators to investigate violations, impose penalties, and issue binding orders. Yet, the Supreme Court has repeatedly noted that many authorities fail to act decisively, allowing developers to continue business as usual despite serious breaches.

FPCE echoed this concern in its recent letter to Union Minister Manohar Lal, stating that many regulators remain “silent and inactive in the face of glaring violations.” This inaction, it warned, risks eroding public confidence and could indicate deeper systemic collusion shielding certain developers.

Such criticism highlights an uncomfortable reality: although RERA provides a strong legal framework, its effectiveness ultimately depends on the willingness of authorities to enforce it uniformly across states.

Why RERA Law Must Inspire the Same Trust as FSSAI

FPCE’s comparison of the RERA law to FSSAI certification is particularly significant. The FSSAI logo has become synonymous with safety and quality assurance in the food sector. In contrast, RERA registration has become a mere formality for developers to display on advertisements, without offering real protection to buyers.

This trust deficit poses a serious risk to the housing sector, which contributes significantly to India’s GDP. Restoring buyer confidence through transparency and enforcement is essential not just for consumers but also for developers who play by the rules and deliver projects on time.

Immediate Relief Through SOPs for State Regulators

While legislative amendments to the RERA law may take time, FPCE has recommended interim steps that can be implemented immediately through administrative orders. The body has urged the Housing Ministry to issue a Standard Operating Procedure (SOP) for all state RERA authorities.

Key suggestions include:

• Builders must deposit adequate funds in escrow accounts to complete pending amenities.
• Regulators must monitor progress and enforce timely delivery of promised facilities.
• State RERAs should ensure consistent and transparent handling of consumer grievances.

Such interim steps, FPCE believes, could deliver immediate relief to homebuyers while long-term amendments are being considered.

Mandatory Declarations from Promoters

Another major reform proposed under the RERA law is the introduction of a declaration system for developers. Before registering a new project, every promoter should declare that:

• All dues to homebuyers, courts, and authorities from previous projects have been settled.
• No penalties or pending cases are left unresolved.

The FPCE has also recommended that this rule apply not just to the developer but also to associated entities or group companies sharing the same brand name or ownership.

If a promoter is found to have submitted a false declaration, FPCE proposes that they be permanently barred from the real estate business across India. Heavy penalties, it says, are essential to deter future violations and prevent repeat offenders from launching new projects under different company names.

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A Call for Stronger Enforcement and Accountability

FPCE’s appeal to reform the RERA law is not just about stricter penalties, it’s about rebuilding public trust in India’s real estate market. The group’s letter emphasizes that without visible enforcement and active regulatory oversight, even the best laws risk becoming toothless.

Experts agree that empowering RERA authorities with clearer mandates, resources, and monitoring tools is essential to ensure compliance. Establishing a nationwide system to evaluate builders’ reputations before approving new projects could also protect buyers and encourage more responsible development practices.

Conclusion

Nearly a decade after its introduction, the RERA law still holds the potential to transform India’s housing market if implemented in both spirit and action. FPCE’s demands underscore a simple truth: regulations are only as strong as their enforcement.

By verifying developers’ track records, enforcing accountability, and introducing transparent SOPs, the government can turn the RERA registration number into what it was always meant to be a genuine symbol of trust and protection for homebuyers.

Until then, restoring faith in the housing sector will depend on how quickly authorities act to uphold the promise of the RERA law and ensure that fairness becomes the rule, not the exception.