National Homebuyers' Body Urges Centre to Strengthen RERA Enforcement and Close Regulatory Loopholes

A prominent pan-India homebuyers' association has called upon the Union Ministry of Housing and Urban Affairs to address significant regulatory shortcomings in the Real Estate (Regulation and Development) Act, 2016, expressing concerns over increasing buyer vulnerability and inadequate enforcement by multiple state RERA authorities.

The Forum for People's Collective Efforts (FPCE) submitted a comprehensive representation to Minister Manohar Lal Khattar, demanding immediate implementation of standard operating procedures across all state regulatory bodies while formal legislative amendments are being formulated.

FPCE president Abhay Upadhyay, who also holds a position on the RERA Central Advisory Council, stated that despite the regulatory framework's positive intentions, it had failed to instill confidence among homebuyers, as several authorities were not exercising their enforcement powers effectively.

Critical Regulatory Gaps Highlighted by Homebuyers' Forum

Amenities Delivery Remains Unenforceable

The association emphasized that there existed no binding mechanism to ensure timely delivery of promised amenities such as clubhouses, swimming pools, landscaped gardens, and other common facilities. Current provisions under Section 18 only addressed possession delays, offering limited recourse for delayed or missing amenities, which has become a major concern for those investing in upcoming real estate projects in Mumbai and other major cities.

FPCE proposed that developers should be mandated to deposit funds in escrow accounts specifically earmarked for completing amenities. Additionally, developers should compensate buyers until all facilities were delivered and became functional.

Builder Track Record Verification Absent

The forum flagged the absence of any formal promoter verification mechanism prior to new project registrations. It recommended mandatory declarations by promoters confirming that all pending dues, penalties, and compensations—including those owed by group companies—had been cleared.

Such measures would prevent defaulting developers from launching fresh projects while unresolved liabilities from previous ventures remained pending. This would also address registration delays, particularly in high-growth zones like Noida and Greater Noida, where numerous projects faced registration holds due to unpaid dues.

Uniform Exit Framework Needed

The association also advocated for a uniform exit framework to reduce legal ambiguity following a recent Supreme Court ruling that differentiated between genuine homebuyers and speculative investors.

FPCE proposed a buyer-friendly refund policy offering 100 percent refund within one year of booking and 90 percent refund thereafter, ensuring predictability and fairness. This concern is particularly relevant for homebuyers evaluating key considerations during property site visits.

Payment Terms Should Link to Completion

Currently, developers could collect nearly the entire unit cost before project completion. FPCE recommended that builders be prohibited from collecting 100 percent of payment until the entire project, including common areas and amenities, was completed. Completion certificates should be mandatory before final payments and possession were allowed.

Call for Standardized Operating Procedures

Describing the situation as a wake-up call, the FPCE stressed the necessity for uniform, enforceable standard operating procedures across all state RERA bodies. The objective was to standardize enforcement, prevent regulatory discretion, and restore trust among homebuyers navigating legal aspects of buying property in India.

The group argued that without immediate intervention, RERA risked becoming merely a symbolic formality rather than a meaningful regulatory tool to protect consumer rights in India's extensive real estate sector. This is especially critical as MahaRERA tightens checks on lapsed project certifications in Maharashtra.

Summary of Proposed Reforms

Ministry to Review Proposals

The housing ministry was expected to review these proposals in consultation with the Central Advisory Council and state authorities. If adopted, these measures could significantly strengthen buyer protections, enhance transparency, and improve compliance in India's real estate market. These reforms would complement existing efforts such as RERA Delhi's registration and complaint mechanisms and RERA Andhra Pradesh's latest updates.

Industry observers noted that such comprehensive reforms would address longstanding concerns of homebuyers and could restore confidence in regulatory mechanisms, particularly for those considering investments in top residential projects in Pune and other growth markets.

Disclaimer: This news article is based on information from multiple sources and has been rewritten for informational purposes. Readers are advised to verify critical details independently and consult with legal or real estate professionals before making any property-related decisions. The views and proposals mentioned are those of the homebuyers' association and do not necessarily reflect the official stance of regulatory authorities or the government.