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Homebuyers’ body FPCE urges PM Modi to restructure RERA as homebuyer protection law
In a letter to Prime Minister Narendra Modi, Forum for People's Collective Efforts has called for separating real estate promotion from homebuyer protection
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Ten years after the Real Estate (Regulation and Development) Act, 2016 (RERA), came into force, homebuyers’ body Forum for People’s Collective Efforts (FPCE) has urged Prime Minister Narendra Modi to restructure the law as a dedicated Real Estate Homebuyer Protection Act, arguing that the existing framework has failed to protect homebuyers amid persistent enforcement gaps and project delays.
In a letter to the Prime Minister, FPCE has called for separating the promotion and development of the real estate sector from the law meant to protect homebuyers. It has suggested that the re-enacted law be administered by a ministry whose primary mandate is consumer protection, such as the Department of Consumer Affairs.
“Separate homebuyer protection from real estate promotion — the only way to save homebuyers. Separate the promotion and development of real estate from the law that protects homebuyers. Re-enact RERA as a dedicated Real Estate Homebuyer Protection Act, with homebuyer protection at its centre. Entrust its administration to a ministry whose primary mandate is consumer protection, such as the Department of Consumer Affairs,” the letter said.
RERA was introduced to address two longstanding concerns: the absence of regulation in the real estate sector and inadequate protection for homebuyers. However, FPCE said several of the malpractices the law was intended to eliminate continue to affect homebuyers, including the diversion of funds, prolonged project delays, one-sided agreements, and the failure to enforce regulatory orders.
“The most disappointing aspect of RERA's implementation is that the very malpractices which necessitated this legislation continue to trouble homebuyers,” the letter said.
₹12.44 lakh crore of homebuyers' money trapped in delayed projects
Citing its 192-page report, based on official records from RERA authorities in seven states, FPCE estimated that around ₹12.44 lakh crore of homebuyers' money is trapped in delayed projects. This amounts to approximately 3.8% of India's GDP and affects an estimated 27.6 lakh families.
A registration number is not protection
FPCE argued that project registration under RERA was never intended to be the ultimate measure of homebuyer protection. Registration and disclosure requirements alone cannot guarantee a completed home or ensure that buyers can enforce their rights, it said.
“We fully recognise that RERA has brought a large number of projects within a registration framework and introduced important disclosure requirements. But registration and disclosure alone cannot be the measure of success when violations continue and homebuyers struggle to obtain effective remedies. A family that has invested its lifetime savings needs a completed home and enforceable rights — not merely a project registration number,” the letter said.
FPCE also questioned the grant of collective extensions to developers during the Covid-19 pandemic and the West Asia crisis without individual applications, while homebuyers received no comparable relief.
Also Read: West Asia crisis: Homebuyers question 4-month RERA project timeline extension, seek equal relief
"It is time for zero tolerance towards malpractices in real estate and the duping of homebuyers. Parliament created a Regulatory Authority; in practice, it has become a Development Authority. If the very character of a law can change after it is enacted, no law can ever succeed. It is high time the authorities themselves were made accountable. Our letter to the Prime Minister is a step in that direction — so that RERA finally becomes what it was always meant to be: a law that protects homebuyers," said Abhay Upadhyay, president, FPCE.
