National Homebuyers Forum Urges Housing Ministry to Address Critical RERA Enforcement Gaps

A prominent pan-India homebuyers' association has reached out to the Union Ministry of Housing and Urban Affairs, flagging significant deficiencies in the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), and expressing concern over the growing vulnerability of property buyers due to inadequate enforcement by several state regulatory authorities.

In a comprehensive submission to Union Minister Manohar Lal Khattar, the Forum for People's Collective Efforts (FPCE) has requested the immediate issuance of standard operating procedures (SOPs) to all state-level regulatory bodies, pending formal amendments to the legislation itself.

Abhay Upadhyay, President of FPCE and a member of the RERA Central Advisory Council, stated that while the regulatory framework was introduced with good intentions, it has failed to inspire confidence among homebuyers exercising their RERA rights, as numerous authorities are not effectively utilizing their enforcement powers.

Major Issues Highlighted by FPCE

Delayed or Incomplete Amenities

The association pointed out the absence of any binding mechanism to ensure the timely delivery of promised amenities such as clubhouses, swimming pools, landscaped gardens, and other common facilities.

Existing provisions under Section 18 of RERA only address delays in handing over possession, offering minimal recourse for buyers when amenities are delayed or missing. FPCE has recommended that developers be required to deposit funds in escrow accounts specifically earmarked for completing amenities. Furthermore, developers should compensate buyers until all facilities are delivered and made operational.

Absence of Promoter Verification System

The forum flagged the lack of a formal mechanism for verifying a promoter's track record before registering new projects. It suggested that promoters should be mandated to declare that all outstanding dues, penalties, and compensations—including those related to group companies—have been settled.

This measure would prevent defaulting developers from launching new projects while unresolved liabilities from earlier ventures remain outstanding. It would also help expedite registrations, particularly in high-demand zones like Noida and Greater Noida, where many projects face registration holds due to unpaid dues.

Need for a Clear Exit Policy

The association also called for a standardized exit framework to reduce legal uncertainty following a recent Supreme Court ruling that distinguished between genuine homebuyers and speculative investors.

FPCE proposed a buyer-friendly refund policy that includes 100% refund within one year of booking and 90% refund thereafter, to ensure transparency and fairness for those seeking to exit projects.

Payment Linked to Project Completion

Under current regulations, developers can collect almost the entire unit cost before project completion. FPCE recommends that builders be barred from collecting 100% payment until the entire project, including common areas and amenities, is completed. Completion certificates should be mandatory before final payments and possession are granted.

Call for Uniform Standard Operating Procedures

Describing the situation as a wake-up call, FPCE emphasized the necessity of uniform and enforceable SOPs across all state RERA authorities. The objective is to standardize enforcement, prevent regulatory discretion, and restore trust among homebuyers.

The group argued that without immediate intervention, RERA risks becoming a symbolic formality rather than a meaningful regulatory mechanism to safeguard buyer rights in India's vast real estate sector.

Summary of FPCE Recommendations

The housing ministry is 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 evolving real estate market.

Disclaimer: This news article is based on information available from public sources and industry reports. Readers are advised to conduct their own research and consult legal or real estate professionals before making property-related decisions. The views expressed do not necessarily reflect the opinion of the publication.