RERA enforcement failures leave 2.7 mn homebuyers with delayed projects

Homebuyers' body FPCE on Wednesday said real estate regulatory authorities in states have failed to properly implement realty law RERA and pointed out that an estimated 27.6 lakh homebuyers are stuck with delayed projects across the country.

On the completion of ten years of the Real Estate (Regulation and Development) Act, 2016 (RERA), the Forum For People's Collective Efforts (FPCE) has come out with a 192-page report 'RERA Extension Abuse: How Regulatory Failure Is Betraying India's Homebuyers'.

Parliament enacted the Act to regulate the contractual relationship between homebuyers and promoters. The RERA aims to ensure transparency and accountability in the real estate sector, thereby protecting the interests of homebuyers.

 

In its report, FPCE President Abhay Upadhyay said, "RERA has not failed as a statute. Its enforcement has. And when enforcement weakens, even the strongest law fails in practice." Based on Ministry of Housing and Urban Affairs' RERA Tracker data (March 2, 2026), he said the report estimates that "around 27.6 lakh homebuyer families have money trapped with builders - at a conservative Rs 45 lakh per family, the total sum locked in undelivered projects amounts to Rs 12.44 lakh crore." Upadhyay said the report is an exercise in course correction to restore the discipline, accountability, and intent with which RERA was enacted.

"Because for the homebuyer, this is not a matter of regulatory design. It is a matter of life savings, shelter, and security. The need for correction is not academic. It is immediate," he added.

FPCE explained the report's findings are based on evidence - drawn from official records: extension orders, regulatory filings, and documented decisions of RERA authorities across multiple states.

Pointing out various lapses in RERA implementation, the association said that statutory conditions are not being examined before granting extensions for delivery of projects.

The FPCE said that delays are regularised rather than addressed and enforcement is replaced by administrative accommodation.

"The regulatory process, instead of acting as a deterrent, becomes a mechanism through which delay is institutionalised," Upadhyay added.

The Supreme Court of India, in multiple matters relating to delayed housing projects, has made strong observations on the functioning of regulatory mechanisms, he added.

The FPCE is a member of the Central Advisory Council (CAC), which is a national advisory body established under Section 41 of the Act.

As per the law, promoters need to disclose all necessary project details and approvals. They are also required to deposit 70 per cent of the amounts realised from homebuyers in a separate bank account, which shall be utilised only for land cost and project construction.