In a strong appeal to the Union Ministry of Housing and Urban Affairs, the Forum for People’s Collective Efforts (FPCE) — a leading homebuyers’ advocacy group — has sought major amendments to the Real Estate (Regulation and Development) Act, 2016 (RERA). The organization has called for mandatory verification of developers’ track records, uniform refund rules, and stricter enforcement mechanisms to restore buyer confidence and accountability within India’s real estate sector.
RERA Registration Number ‘Has Failed to Become a Symbol of Trust’
FPCE President Abhay Upadhyay, in a letter addressed to Union Housing and Urban Affairs Minister Manohar Lal, stated that despite the introduction of RERA to protect homebuyers, the registration number has failed to inspire consumer trust. “Unlike the FSSAI mark, which assures product safety, the RERA registration number has not become a symbol of reliability for consumers,” Upadhyay wrote.
He added that several developers continue to brazenly exploit buyers by delaying possession, misusing project funds, and breaching agreements — often under the watch of state RERA authorities, who remain “passive spectators.”
FPCE’s Key Demands for Strengthening RERA
The FPCE has proposed a comprehensive set of reforms aimed at improving regulatory effectiveness and buyer protection. The main recommendations include:
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Pre-approval verification of developers’ track records: Authorities should assess whether a promoter has any unresolved complaints, unpaid dues to buyers, or penalties from other projects before approving a new one.
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Mandatory compensation for unfulfilled amenities: Builders should be legally required to compensate buyers at a fixed rate until all promised facilities — such as clubhouses, parking, and landscaping — are delivered.
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Uniform refund rules: Clear, standardized guidelines for buyer-initiated cancellations should be introduced to ensure fair and transparent refund processes across all states.
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Escrow account enforcement: Developers should deposit sufficient funds into an escrow account to ensure completion of pending amenities and facilities, with regulators monitoring these accounts closely.
Criticism of Passive RERA Authorities
FPCE’s letter strongly criticizes state RERA bodies for their lack of enforcement. It highlights how errant developers with poor compliance histories continue to launch new projects without scrutiny. “The failure of RERA authorities to check a promoter’s past record has allowed non-compliant builders to continue exploiting new sets of buyers,” the letter noted.
The Supreme Court of India has also, on multiple occasions, flagged such lapses — observing that many RERA authorities, despite having broad powers to investigate and penalize, often fail to act decisively against non-compliant developers. FPCE emphasized that this inaction raises questions about regulatory intent and possible collusion shielding errant builders from accountability.
Call for Immediate Action and SOPs
Acknowledging that legislative amendments may take time, FPCE urged the Ministry to issue Standard Operating Procedures (SOPs) to all state RERA authorities as an interim measure. These SOPs should direct regulators to:
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Mandate adequate fund deposits in escrow accounts.
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Monitor the timely completion of pending facilities.
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Ensure consistent enforcement and reporting mechanisms across states.
Upadhyay, who is also a member of the Central Advisory Council, RERA, stated that the ministry must step in immediately to restore homebuyer confidence. “Administrative clarity and decisive action cannot wait,” he said, adding that the real estate sector’s contribution to India’s GDP depends on restoring buyer trust through visible, robust protection mechanisms.
Conclusion
The FPCE’s demands reflect growing frustration among homebuyers regarding RERA’s limited enforcement effectiveness. By proposing pre-approval checks, mandatory compensation, and stricter oversight, the organization aims to transform RERA into a truly consumer-centric and transparent regulatory system. Whether through legislative amendments or ministerial directives, these proposed reforms could mark a turning point in safeguarding the rights of homebuyers and strengthening regulatory accountability across India’s real estate sector.
