India’s real estate sector has undergone significant transformation since the introduction of the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA. The law was designed to bring transparency, accountability, and protection to homebuyers who had long faced project delays, cost escalations, and lack of disclosure from developers.
However, a recent allegation by the Forum for People’s Collective Efforts (FPCE) has reignited concerns about the effectiveness of the system. According to FPCE, more than 75 percent of state Real Estate Regulatory Authorities (RERAs) have failed to publish their annual reports as mandated. The organization claims that this lack of transparency leaves homebuyers “taken for a ride,” undermining the very purpose of the legislation.
This development raises important questions about accountability, transparency, and the current state of India’s real estate regulation framework.
Understanding RERA and Its Purpose
The Real Estate (Regulation and Development) Act was introduced to address long-standing issues in India’s property market. Before RERA, buyers often had limited legal recourse against delayed projects, hidden charges, and incomplete developments.
The Act mandated the establishment of state-level RERAs to:
- Register and monitor real estate projects
- Ensure developers disclose project details
- Protect buyers from unfair practices
- Provide a grievance redressal mechanism
- Publish annual performance reports
Annual reports are a crucial component of this framework. They provide insights into:
- Number of registered projects
- Complaints filed and resolved
- Penalties imposed
- Financial performance and regulatory actions
These reports help measure the effectiveness of each state’s regulatory body.
FPCE’s Allegations: A Serious Concern
The Forum for People’s Collective Efforts (FPCE), an advocacy group working on behalf of homebuyers, has alleged that more than 75 percent of state RERAs have not published their annual reports as required under the law.
If true, this omission signals a serious compliance issue. The law requires these authorities to submit annual performance reports to state governments and make them publicly available. These reports are essential for maintaining transparency.
Without them, it becomes difficult for stakeholders to evaluate whether RERAs are effectively enforcing regulations or simply functioning in name.
FPCE argues that the absence of these reports weakens accountability and leaves buyers vulnerable.
Why Annual Reports Matter for Homebuyers
Annual reports are not mere formalities. They serve several important purposes:
1. Transparency in Functioning
Homebuyers can assess how many complaints have been resolved and how efficiently the authority is operating.
2. Accountability of Developers
Reports often include details of penalties imposed on errant builders. This helps buyers gauge whether regulatory action is being taken seriously.
3. Policy Evaluation
Governments use these reports to identify gaps in implementation and improve regulatory frameworks.
When such reports are not published, buyers are left in the dark.
Impact on Buyer Confidence
The real estate sector depends heavily on trust. Purchasing a home is one of the largest financial decisions most individuals make in their lifetime.
RERA was introduced to restore trust in a market that had become synonymous with delays and disputes. If regulatory bodies themselves fail to comply with statutory requirements, it can erode confidence.
Homebuyers may begin to question whether their grievances will be handled efficiently. Investors may hesitate to commit funds in uncertain regulatory environments.
Transparency builds credibility. Its absence creates doubt.
Variation Across States
RERA implementation varies significantly across states. Some state authorities have been proactive, publishing regular updates, maintaining user-friendly portals, and resolving complaints within stipulated timelines.
Others, however, have struggled with staffing shortages, technological limitations, and bureaucratic delays.
The allegation that over 75 percent of state RERAs have not published annual reports suggests uneven enforcement standards nationwide.
Such disparity undermines the uniformity intended by the central legislation.
Possible Reasons Behind Non-Compliance
Several factors could contribute to the failure to publish annual reports:
Administrative Delays
Limited manpower and bureaucratic processes may slow report preparation.
Political Interference
Real estate is closely linked to state-level governance and revenue generation. Political considerations can influence regulatory actions.
Weak Oversight Mechanisms
If there are no strict consequences for failing to publish reports, compliance may become lax.
Regardless of the reason, non-compliance raises concerns about institutional accountability.
Legal and Policy Implications
Failure to publish annual reports may constitute a violation of statutory obligations under RERA. This could invite legal scrutiny and judicial intervention.
Advocacy groups and homebuyer associations may approach courts to demand compliance. Judicial oversight has historically played a role in strengthening real estate governance in India.
At the policy level, the central government may need to introduce monitoring mechanisms to ensure state RERAs fulfill their reporting obligations.
The Role of Homebuyer Activism
Organizations like FPCE have been instrumental in highlighting systemic issues in the real estate sector. Their advocacy has often brought attention to regulatory gaps and policy failures.
By raising the issue of missing annual reports, FPCE seeks to push for greater transparency and accountability.
Homebuyer activism has evolved significantly over the past decade. Collective action has influenced policy amendments and judicial decisions.
Such vigilance plays a vital role in strengthening democratic accountability.
Broader Challenges in Real Estate Regulation
Beyond annual report publication, the real estate sector faces ongoing challenges:
- Delayed project completions
- Financial stress among developers
- Rising construction costs
- Legal disputes over land ownership
- Inconsistent enforcement standards
RERA was designed to address many of these issues, but effective implementation remains key.
Without strong institutional functioning, even well-drafted laws can lose impact.
What Needs to Be Done
To restore confidence and ensure compliance, several steps may be necessary:
Mandatory Monitoring
The central housing ministry could establish a monitoring dashboard tracking state-level compliance.
Penalties for Non-Compliance
Clear consequences for failing to publish annual reports may encourage adherence.
Increased Transparency
Digital publication of reports in accessible formats can improve public trust.
Independent Audits
Periodic third-party audits of RERA functioning may strengthen accountability.
The Way Forward for Homebuyers
For homebuyers, awareness remains critical. Before investing in a project, buyers should:
- Verify project registration status on RERA portals
- Review available project details and approvals
- Check developer track records
- Monitor complaint resolution mechanisms
While regulatory gaps are concerning, informed buyers can reduce risk through due diligence.
Conclusion
The allegation that over 75 percent of state RERAs have failed to publish annual reports raises serious questions about transparency and accountability in India’s real estate regulatory system.
RERA was introduced to protect homebuyers and rebuild trust in the property market. If regulatory authorities themselves do not comply with statutory requirements, the credibility of the system is at stake.
Publishing annual reports is not a technicality. It is a fundamental aspect of institutional transparency. Homebuyers deserve clarity on how complaints are handled, penalties imposed, and regulatory powers exercised.
As advocacy groups continue to raise concerns, policymakers must respond decisively. Strengthening oversight mechanisms and ensuring compliance can help restore confidence.
In a sector where financial stakes are high and emotional investments even higher, accountability is not optional. It is essential.