RERA doing nothing except helping defaulting builders: SC
New Delhi, Feb. 13 -- The Supreme Court on Thursday observed that the Real Estate Regulatory Authority (RERA) meant to serve homebuyers is only helping builders who are in default and states should have a rethink on appointing retired bureaucrats to head such bodies when citizens are not getting any relief.
The damning observations were made by the top court while examining an appeal filed by Himachal Pradesh government seeking shifting of the RERA office from Shimla to Dharamsala in Kangra district. The Himachal Pradesh high court on December 30, 2025 had restrained the state from doing so on a petition filed by a real estate developer Naresh Sharma.
Noting that a retired bureaucrat heads RERA in the state, the bench of Chief Justice of India (CJI) Surya Kant and justice Joymalya Bagchi said, "It is high time states should rethink on the constitution of these authorities.It is better you abolish it."
Sharing its anguish on the working of RERA across the country, CJI said, "States must consider the people for whom RERA was constituted. They (homebuyers) are distressed, disgusted and are not getting any relief while the authority is giving the benefit to builders who are in default."
The state represented by senior advocate Madhavi Divan and Advocate General Anup Kumar Rattan shared the court's concern but pointed out that retired bureaucrats are eligible under the law to be appointed to such authorities.
Advocate general pointed out that the purpose for shifting RERA to Dharamsala is to develop the city along with Palampur and to decongest Shimla where most of the authorities and government buildings are situated.
The bench observed, "What is the logic of retired IAS persons to develop Palampur, etc. The state must engage architects and engineers to help with the development."
However, the court granted relief to the state by staying the HC order and permitting shifting of RERA to Dharamsala. The court said that the decision will be subject to the final outcome of the proceedings before the high court where Sharma's petition is pending.
Divan who argued the appeal told the court that the petition before the HC was styled as a public interest litigation (PIL) at the behest of a builder. The court said, "For a real estate agent, RERA is relevant. But a PIL is a misnomer."
Senior advocate Abhinav Mukherjee who appeared for Sharma told the court that the issue raised by him objected to the reasonableness of the government decision to transfer RERA when the appeals against the RERA orders will continue to be filed before the Principal District Judge, Shimla. Besides, he pointed out that most building projects are in Solan while there are only 20 such projects in the entire Kangra district.
The court noted the concern raised by the HC petitioner and held, "With a view to ensure persons affected by order passed by RERA, let the appropriate powers be shifted from Principal District Judge, Shimla to Principal District Judge, Dharamsala."
The bench said that Shimla is "overexhausted" and the state is best suited to take a holistic view of the situation.
"If all related activities are shifted to Dharamsala, it will ultimately help people," the bench remarked. The state assured the court to take note of the concerns raised....
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