In a significant development, the Forum for People’s Collective Efforts (FPCE), representing homebuyers, has voiced its concerns regarding the Real Estate (Regulation and Development) Act, 2016 (RERA). The forum claims that despite RERA’s objectives to regulate the real estate sector and protect homebuyers, it has failed to meet its goals. As a result, the FPCE has sought the intervention of the Union Consumer Affairs Ministry to issue specific guidelines that safeguard consumers in the real estate sector.
50,000 Complaints Pending in Consumer Forums
In a letter addressed to Nidhi Khare, Secretary of Consumer Affairs, the FPCE highlighted that, as of July 31, 2024, nearly 50,000 complaints related to real estate were still pending before consumer forums across the country. The figures, sourced from a government reply in the Lok Sabha on August 7, 2024, demonstrate the sheer volume of grievances faced by homebuyers who are seeking justice outside of RERA’s ambit.
The forum noted that many consumers are bypassing RERA and approaching consumer forums directly for their complaints. This growing trend is an indicator, according to the FPCE, that RERA has not lived up to its promises despite being fully functional for seven years.
Failure to Achieve RERA’s Objectives
The FPCE argued that RERA, which was meant to bring transparency and accountability to the real estate sector, has largely failed to achieve its desired objectives. The forum expressed disappointment in RERA’s ability to regulate the sector effectively, citing issues like delayed projects, unresolved consumer complaints, and a lack of proper enforcement as key failures.
The forum also pointed out that Section 71 of the RERA Act allows consumers to withdraw their complaints from consumer forums and approach RERA instead. However, many consumers have opted not to take this route, suggesting a lack of faith in the RERA system.
Call for Sector-Specific Guidelines
The FPCE has now called on the Consumer Affairs Ministry to step in and issue sector-specific guidelines to protect consumers’ interests in the real estate sector. The forum’s official stated that life savings are at stake for many consumers, and the malpractices prevalent in the real estate sector are in blatant violation of the Consumer Protection Act, 2019.
With the 2024 Maharashtra elections around the corner and increasing focus on consumer protection, the FPCE hopes that the government will take swift action to address these ongoing concerns and ensure accountability in the real estate sector.
