Better to abolish RERA as it only aids builders in default: Supreme Court

“All States should now think of the people for whom the institution of RERA was created. Except for facilitating builders in default, it is not doing anything else. Better to just abolish this institution,” CJI Surya Kant remarked.

Better to abolish RERA as it only aids builders in default: Supreme Court

File Photo: IANS

The Supreme Court on Thursday came down heavily on the Real Estate Regulatory Authority (RERA), observing that the regulatory body has not been doing anything except aiding builders in default, and that it would be better if the institution were abolished.

Hearing an appeal challenging Himachal Pradesh High Court’s decision to stay a state government notification for shifting the State RERA office to Dharamshala, a bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi said that the states should think about the welfare of people and the purpose for which RERA was created.

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“All States should now think of the people for whom the institution of RERA was created. Except for facilitating builders in default, it is not doing anything else. Better to just abolish this institution,” CJI Surya Kant remarked.

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Earlier last year, the High Court had stayed the Himachal government’s decision to shift the RERA office to Dharamshala. The High Court had observed that the state issued a notification without even identifying the land for the new office.

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“We are of the considered opinion that the Notification dated 13.06.2025 shall remain stayed till further order and the subsequent order that the 18 outsourced employees, further on their application, have been directed to be adjusted in other Boards and Corporations since the same would render the functioning of RERA defunct,” the High Court had said.

However, the top court today set aside the High Court order, allowing the State government to shift the RERA office from Shimla to Himachal Pradesh.

“With a view to ensure that persons affected by RERA orders are not inconvenienced, the principal appellate is also moved to Dharamshala,” the Bench directed.

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