The Forum for People’s Collective Efforts (FPCE), the organisation that spearheaded the movement for the enactment of the Real Estate (Regulation and Development) Act, 2016 (RERA), has written to Prime Minister Narendra Modi seeking significant changes to the existing legal framework to strengthen homebuyer protection and accountability in the real estate sector.
In its letter, FPCE has called for separating the promotion and development of the real estate sector from the legal framework governing homebuyer protection. It has also proposed the re-enactment of RERA as a dedicated Real Estate Homebuyer Protection Act, with consumer interests at the centre of the legislation.
The organisation believes that the existing framework needs structural changes to ensure that the interests of homebuyers receive greater priority and that regulatory authorities are made more accountable.
FPCE Calls for Separation of Real Estate Development and Homebuyer Protection
One of the key recommendations made by FPCE is to separate the government’s responsibility for promoting the real estate sector from its responsibility for protecting homebuyers.
According to the organisation, the promotion and development of the real estate industry should be addressed independently from the legal framework designed to safeguard property purchasers.
The proposed separation is intended to ensure that homebuyer protection remains the primary objective of the regulatory legislation, rather than being combined with broader objectives relating to real estate sector development.
FPCE has emphasised the need for a legal framework that prioritises the rights and interests of consumers purchasing residential properties.
Proposal to Re-enact RERA as a Real Estate Homebuyer Protection Act
FPCE has proposed that the existing RERA legislation be re-enacted as a dedicated Real Estate Homebuyer Protection Act.
The proposed legislation would place consumer protection at its core and establish a framework specifically designed to address the concerns and grievances of homebuyers.
The recommendation seeks to reinforce the protective purpose of the original RERA legislation and ensure that the interests of homebuyers remain central to regulatory decision-making.
A dedicated homebuyer protection law could also provide an opportunity to review the existing regulatory structure, enforcement mechanisms and institutional responsibilities.
FPCE Wants RERA Administration Under Consumer Protection Ministry
Another important recommendation concerns the ministry responsible for administering the proposed legislation.
FPCE has suggested that the administration of the law should be entrusted to a ministry whose primary mandate is consumer protection, such as the Department of Consumer Affairs.
The proposal seeks to shift the administrative responsibility towards a consumer-centric institutional framework rather than placing it primarily within the broader real estate development policy structure.
According to the organisation’s recommendations, such an arrangement would help ensure that regulatory priorities are aligned with the protection of property buyers.
Accountability Framework for Real Estate Regulatory Authorities
FPCE has also called for introducing an effective accountability framework for Real Estate Regulatory Authorities.
The recommendation highlights the importance of ensuring that regulatory institutions discharge their statutory responsibilities effectively and remain accountable for their decisions and performance.
An effective accountability mechanism would need to address the functioning of regulatory authorities and ensure that homebuyers receive meaningful protection under the law.
The proposal seeks to strengthen institutional responsibility and improve the effectiveness of the regulatory framework governing real estate transactions.
FPCE Seeks Time-Bound Action Plan from Housing Ministry
The organisation has further recommended that the Ministry of Housing and Urban Affairs (MoHUA) be directed to examine FPCE’s report and prepare a time-bound action plan.
The proposed action plan should contain clearly defined timelines for examining and implementing the recommendations.
FPCE believes that a structured approach with specific deadlines would help translate its proposed reforms into concrete policy and legislative measures.
Five Key Recommendations Made by FPCE
FPCE’s letter to the Prime Minister outlines five major recommendations for reforming the existing RERA framework:
- Separate real estate development from homebuyer protection: Keep policies promoting the real estate sector separate from legislation intended to safeguard homebuyers.
- Re-enact RERA: Introduce a dedicated Real Estate Homebuyer Protection Act with consumer protection as its central objective.
- Transfer administration to a consumer protection ministry: Entrust the administration of the proposed legislation to a ministry whose primary responsibility is consumer protection, such as the Department of Consumer Affairs.
- Introduce regulatory accountability: Establish an effective accountability framework for Real Estate Regulatory Authorities to strengthen institutional responsibility and regulatory performance.
- Prepare a time-bound action plan: Direct the Ministry of Housing and Urban Affairs to examine FPCE’s report and formulate an action plan with clearly defined timelines.
Proposed RERA Reforms Could Reshape Homebuyer Protection
The recommendations submitted by FPCE seek to bring greater focus on consumer rights and institutional accountability within India’s real estate regulatory framework.
Since its enactment, RERA has introduced a regulatory structure governing project registration, promoter obligations, disclosure requirements and the protection of property purchasers. However, concerns relating to delayed possession, project non-completion, enforcement of orders and the functioning of regulatory authorities continue to remain important issues for homebuyers.
FPCE’s proposals seek to address these concerns through a more consumer-focused legislative and administrative framework.
The suggestion to re-enact RERA as a dedicated homebuyer protection law, along with transferring its administration to a consumer protection ministry, represents a significant proposed change in the institutional approach to real estate regulation.
Conclusion
FPCE’s letter to Prime Minister Narendra Modi has brought renewed attention to the need for strengthening homebuyer protection under India’s real estate regulatory framework.
The five recommendations seek to separate real estate sector promotion from consumer protection, establish a dedicated homebuyer protection law, strengthen regulatory accountability and introduce a time-bound mechanism for considering reforms.
However, these are recommendations submitted by FPCE and not enacted amendments to the RERA Act. Any changes to the existing legislation or its administrative structure would require consideration and appropriate action by the Central Government.
