RERA Gaps Exposed: Homebuyers Demand Stronger Protection Against Errant Builders Across India

India’s top homebuyers’ association urges the Housing Ministry to fix key flaws in RERA 2016—calling for stricter builder accountability, escrow safeguards, and uniform SOPs to protect buyers from fraud and delays.

The Fortune Realty Group

10/29/20254 min read

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RERA Gaps Exposed: Homebuyers Demand Stronger Protection Against Errant Builders Across India

India’s top homebuyers’ association urges the Housing Ministry to fix key flaws in RERA 2016—calling for stricter builder accountability, escrow safeguards, and uniform SOPs to protect buyers from fraud and delays.

India’s apex homebuyers’ body, Forum for People’s Collective Efforts (FPCE) — the same group instrumental in pushing for the Real Estate (Regulation and Development) Act, 2016 (RERA) — has now spotlighted key gaps and inconsistencies in its implementation.

According to the Economic Times report, the FPCE has written to the Union Housing and Urban Affairs Ministry, demanding stronger enforcement mechanisms to protect homebuyers from errant builders, and ensure that state RERA authorities function uniformly and effectively across India.

The concerns arise as several developers continue to bypass RERA norms, delay project deliveries, or misuse funds despite the law’s existence — exposing serious cracks in the system meant to safeguard consumer rights.

Homebuyers Raise the Alarm on RERA’s Loopholes

FPCE’s detailed representation identifies several major shortcomings that undermine RERA’s intent. These include:

  • Inconsistent Implementation Across States:
    Different states have diluted RERA’s core provisions or amended them in ways that favor builders over consumers.

  • Lack of Uniform Standard Operating Procedures (SOPs):
    Homebuyers have urged the Centre to mandate standardized RERA guidelines to ensure consistent grievance redressal and compliance across all state authorities.

  • Weak Enforcement Against Errant Builders:
    FPCE points out that many state RERA bodies fail to take timely punitive action, leading to recurring violations and delayed possession for thousands of buyers.

  • Need for Escrow Safeguards:
    Homebuyers have reiterated the need for strict escrow account monitoring, ensuring developers utilize funds solely for project development rather than diversion to other ventures.

  • Pending Appeals & Non-Execution of Orders:
    Several RERA orders in favor of homebuyers remain unenforced, with developers exploiting legal loopholes or filing repetitive appeals to delay justice.

Key Issues Highlighted by Homebuyers Under RERA 2016

Nearly a decade after RERA’s introduction, homebuyers are demanding a “RERA 2.0” — a stronger, more transparent version that genuinely ensures project completion and timely delivery.

Industry experts agree that real-estate transparency and buyer trust are the foundations of India’s rapidly growing property sector. Addressing these systemic gaps could lead to:

  • Higher investor confidence in the real-estate market.

  • Increased foreign and NRI investment due to better compliance and accountability.

  • Stronger project completion rates, reducing non-performing assets linked to stalled housing developments.

Why RERA Reform Is Urgent in 2025

While the move calls for more stringent oversight on builders, it could also restore credibility in the property market. For genuine developers following ethical practices, tighter RERA norms will help differentiate their projects from fraudulent or poorly managed ones.

For homebuyers, RERA reform could mean greater security, assured delivery timelines, and legal recourse that actually works. This will strengthen primary sales and resale markets, especially in high-demand areas like Delhi-NCR, Noida, and Gurgaon, where delays and disputes have been historically common.

Impact on Real-Estate Developers and Buyers

The FPCE has urged the Housing Ministry to:

  • Introduce central monitoring for RERA compliance across states.

  • Mandate public disclosure of defaulting builders on RERA portals.

  • Simplify the appeal process for homebuyers.

  • Create fast-track tribunals to ensure RERA orders are implemented within set deadlines.

These reforms, if accepted, could revolutionize the homebuyer experience and restore market balance in India’s $200-billion real-estate sector.

FPCE’s Key Recommendations to the Government

In markets like Delhi, Noida, Gurgaon, and Faridabad, where luxury apartments and affordable flats coexist, stricter RERA enforcement could boost confidence among buyers. Investors looking for legally verified, RERA-approved properties will find a stronger framework for dispute resolution and project completion guarantees.

It’s a turning point that may redefine how buyers assess credibility before investing in residential or commercial projects in Delhi-NCR’s dynamic market.

What It Means for Delhi-NCR Homebuyers

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