‘Better To Abolish RERA, Benefits Only Defaulting Builders’: Supreme Court

Last Updated:February 12, 2026, 16:26 IST

A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi noted that States should reflect on the purpose behind introduction of the RERA Act.

The Supreme Court on Thursday expressed disappointment over the functioning of the Real Estate Regulatory Authority (RERA), questioning whether the institution was serving the purpose for which it was created. It further remarked that it may be better to abolish RERA if it continues to benefit builders rather than homebuyers.

A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi noted that States should reflect on the purpose behind introduction of the RERA Act.

“All States should now think of the people for whom the institution of RERA was created. Except facilitating builders in default, it is not doing anything else. Better to just abolish this institution," CJI Kant said as quoted by Bar&Bench.

The remarks were made while the top court was hearing an appeal against a Himachal Pradesh High Court order that had stayed a State government notification shifting the Himachal Pradesh RERA office from Shimla to Dharamshala.

The High Court, in its earlier order, had stayed the June 13, 2025 notification, noting that the decision to shift the office was taken “without even identifying the alternative office place." It had also expressed concern that the adjustment of 18 outsourced employees to other boards and corporations could render the functioning of RERA defunct.

However, the Supreme Court on Thursday set aside the High Court’s stay order and permitted the State government to shift the RERA office to Dharamshala. The top court also directed that the principal appellate tribunal be moved to Dharamshala to ensure that individuals affected by RERA orders are not inconvenienced.

“With a view to ensure that persons affected by RERA orders are not inconvenienced, the principal appellate is also moved to Dharamshala," the bench directed.

The RERA Act of 2016 was established to regulate the real estate sector, enhance transparency, protect home buyers, and ensure the timely delivery of projects.

News india ‘Better To Abolish RERA, Benefits Only Defaulting Builders’: Supreme Court

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