The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring transparency, accountability, and timely delivery to India’s real estate sector. However, homebuyers from several residential projects in Greater Hyderabad have now urged the government to introduce urgent reforms in the functioning of Real Estate Regulatory Authorities (RERA) and strengthen enforcement mechanisms to better safeguard buyers’ interests.
The demand comes after the Supreme Court’s significant observations on February 12 regarding the functioning of RERA authorities across the country, highlighting delays in enforcement and growing hardships faced by homebuyers despite the existence of the regulatory framework.
Homebuyers Seek Stronger RERA Enforcement
Residents from housing projects including Jains Balaji Nilayam and Casa Waterside have appealed for immediate reforms to ensure that developers comply with their legal obligations.
Representing several affected homebuyers, A.M. Jacob of JSK Consultants stated that although RERA was enacted to protect buyers and promote transparency, many of its provisions are not being effectively implemented.
According to the homebuyers, delays in enforcement and inadequate monitoring have left many purchasers struggling despite investing their lifetime savings in residential properties.
Major Concerns Raised by Homebuyers
1. Delay in Transfer of Corpus Funds and Maintenance Deposits
Residents alleged that builders often retain corpus funds, advance maintenance charges, and security deposits for extended periods without transferring them to residents’ associations or paying interest on the amounts collected.
This creates financial burdens for newly formed associations responsible for maintaining housing complexes.
2. Deviations from Promised Specifications
Many buyers claim that developers fail to deliver amenities, layouts, or construction quality as promised in Agreements for Sale, brochures, and marketing materials.
Such deviations often result in prolonged legal disputes after possession.
Five-Year Defect Liability Needs Better Enforcement
Under the RERA Act, developers are responsible for rectifying structural defects and workmanship issues for five years after handing over possession.
However, homebuyers allege that this statutory defect liability provision is often poorly enforced, forcing residents to spend their own money on repairs that should legally be the builder’s responsibility.
Confusion Over Carpet Area Disclosures
Despite RERA mandating that apartments be sold based on carpet area, buyers say some developers continue using varying terminologies and calculations that create confusion regarding the actual usable area.
The residents have called for stricter monitoring to ensure uniform carpet area disclosures across all registered projects.
Delay in Conveyance Deeds and Transfer of Common Areas
One of the major grievances highlighted by residents is the delay in execution of conveyance deeds and transfer of common areas to residents’ welfare associations.
Without proper conveyance, apartment owners often face legal uncertainties regarding ownership and management of common facilities.
The homebuyers urged authorities to make timely conveyance mandatory and strictly enforce compliance.
Need for Better Compliance with Safety Norms
Residents also expressed concerns over compliance with:
- Fire safety approvals
- Environmental clearances
- Electrical safety certifications
- Other statutory permissions
According to them, stronger regulatory monitoring is necessary to ensure occupant safety and prevent future risks.
Demand for Financial Audits and Escrow Monitoring
Homebuyers have urged RERA authorities to conduct regular financial and quality audits of registered projects.
Special emphasis has been placed on monitoring the mandatory escrow accounts, where developers are required to deposit a significant portion of funds collected from buyers.
Proper auditing, they argue, would prevent diversion of project funds and improve timely completion of projects.
Key Reforms Sought by Homebuyers
The affected residents have requested the government and RERA authorities to introduce several reforms, including:
- Suo motu investigations into defaulting projects.
- Time-bound execution of recovery orders.
- Strict penalties for repeated violations by promoters.
- Mandatory and timely execution of conveyance deeds.
- Regular monitoring of escrow accounts and fund utilisation.
- Independent financial and construction quality audits.
- Improved enforcement of the five-year defect liability provisions.
Supreme Court Observations Add Momentum
The appeal for reforms gained significance after the Supreme Court’s observations regarding RERA implementation, which reportedly highlighted delays in enforcement and ineffective execution of statutory provisions across several states.
Homebuyers believe that stronger implementation of existing laws, rather than additional legislation, will significantly improve consumer protection.
Conclusion
The latest demands from homebuyers reflect a growing expectation that RERA authorities should move beyond project registration and actively enforce compliance. Timely execution of orders, transparent fund monitoring, faster grievance redressal, and strict action against defaulting developers could significantly strengthen confidence in India’s real estate sector.
With homebuyers investing substantial lifetime savings into residential properties, effective implementation of the Real Estate (Regulation and Development) Act, 2016 remains critical to ensuring fairness, accountability, and long-term trust in the housing market.
