RERA only for interest of builder? Scrutiny of the Supreme Court; A need for structural rethinking

New Delhi | news agency The Supreme Court of India on Thursday criticized the functioning of the Real Estate Regulatory Authority (RERA) in strong terms. The court observed harshly that the organization was helping bankrupt builders instead of protecting the interest of home buyers. A bench of Chief Justice Surya Kant and Justice JB Pardiwala said in clear words that the citizens whom RERA was established to protect are now completely frustrated and hopeless. The court also noted that they are not getting any effective relief from RERA. Not only this, the Supreme Court also expressed the view that it has no objection even if the institution is abolished, and it is time for all the states to reconsider the establishment and functioning of RERA.

Controversy over relocation of RERA office

The Supreme Court’s displeasure was revealed during the hearing of a case in Himachal Pradesh. The Himachal Pradesh government had decided to shift the state RERA office from Shimla to Dharamshala. An appeal was filed against the decision and the matter went to the Himachal Pradesh High Court. Last year, the high court stayed the state government’s notification. Because, the decision to relocate the office was taken without determining the alternative location. Also, the High Court order also mentioned the inclusion of 18 outsourced employees in other boards and corporations.

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The order of the High Court was quashed by the Supreme Court

On Thursday, the Supreme Court quashed the order of the High Court and gave a big relief to the state government. The court allowed the shifting of the RERA office from Shimla to Dharamshala. However, the Supreme Court gave clear directions to ensure that the relocation process does not cause any inconvenience to the general public or the people affected by the RERA orders.

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Appellate Tribunal also at Dharamshala

The bench directed that not only the RERA office but also the appellate tribunal should be shifted to Dharamshala so that citizens do not have to travel repeatedly to file appeals. Senior advocate Madhavi Divan argued in court on behalf of the state government. The Supreme Court noted that earlier in a similar case the court had lifted the stay of the High Court on shifting the headquarters of the Himachal Pradesh Backward Classes Commission from Shimla to Dharamshala.