Government Advisory Council Member Calls RERA Registration

A senior member of the Central Advisory Council has raised serious questions about the effectiveness of mandatory real estate project registration under the Real Estate (Regulation and Development) Act, 2016, stating that the provision has become meaningless without proper enforcement mechanisms.

Core Issue: Registration Without Accountability

In a letter addressed to Union Housing and Urban Affairs Minister Manohar Lal Khattar on October 28, Central Advisory Council member Abhay Upadhyay has proposed a series of critical reforms to address significant loopholes in the current regulatory framework. Upadhyay, who also heads the Forum for People's Collective Efforts, a nationwide homebuyers' association, emphasized that RERA registration has failed to offer meaningful protection to homebuyers or ensure compliance by developers.

Proposed Reforms: Declaration of Dues Clearance

The advisory council member has suggested making it mandatory for developers and their group entities to submit a declaration before registering new projects. This declaration must confirm several critical points:

• All dues, penalties, and compensations owed to homebuyers in any other projects have been cleared
• No unresolved liabilities exist under related or group companies of the promoter
• All regulatory authorities and court orders have been complied with

According to the proposal, failure to provide an accurate declaration should result in permanent disqualification from the real estate business, along with the imposition of heavy penalties.

Loss of Trust in RERA Certification

The Forum for People's Collective Efforts has argued that the RERA registration number, though mandated, has lost its intended credibility among property buyers. Unlike regulatory certifications in other sectors such as the FSSAI stamp for food safety, the RERA number is no longer seen by buyers as a guarantee of compliance or consumer protection.

According to the homebuyers' association, several state RERA authorities have not exercised their statutory powers to enforce compliance, penalize errant builders, or ensure execution of orders in favor of homebuyers. This has significantly undermined the law's effectiveness across multiple states.

Demand for Uniform Standard Operating Procedures

Until formal amendments can be made to the Act, the association has urged the housing ministry to issue standard operating procedures to all state-level RERA authorities. These SOPs should aim to ensure consistent enforcement, standardize builder declarations, improve accountability and responsiveness, and restore buyer confidence in the regulatory system.

Additional Demands from Homebuyers' Body

The Forum for People's Collective Efforts has highlighted other pressing issues and submitted the following proposals to the ministry:

The association has also reiterated that the current focus of RERA on delays in possession is grossly inadequate, as it does not cover other forms of project default or missing amenities such as clubhouses, parks, or promised infrastructure. This is a significant concern for homebuyers who have invested in projects based on advertised facilities.

Regulatory Gaps Widening Risk

The communication to the housing minister underscores a growing consensus among consumer bodies that without effective enforcement and compliance checks, RERA risks becoming a symbolic procedure rather than a genuine consumer protection mechanism. The association has warned that without corrective action, buyer vulnerability and real estate litigation will continue to rise significantly.

The housing ministry is expected to review the proposals through consultations with the Central Advisory Council and may consider issuing interim directives before pursuing legislative amendments. This development comes at a time when housing completions have seen significant improvement in major cities, partly attributed to RERA implementation.

Industry experts suggest that similar concerns have been raised in various states. For instance, RERA Gujarat has implemented stronger buyer protection mechanisms, while RERA Delhi has established clearer complaint and verification processes. The proposals submitted by the advisory council member could potentially set a precedent for nationwide reforms in real estate regulation.

Disclaimer: This news article is based on information available as of October 28, 2025. Readers are advised to verify the latest developments and consult legal experts before making any property investment decisions. The views expressed by the Central Advisory Council member represent his professional opinion and recommendations to the government.