Parliament Question: Strengthening RERA, 2016

GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 6232 TO BE ANSWERED ON APRIL 02, 2026 STRENGTHENING RERA, 2016 No. 6232. SHRI JAI PRAKASH: Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state: (a) whether the Government is contemplating giving more teeth to Real Estate (Regulation and Development) RERA Act, 2016 as it has become dysfunctional and did not come out with the expectation of the people and also have failed to protect homebuyers which is their intended purpose and if so, the details thereof; (b) whether the Government is considering making the Act homebuyer friendly and if so, the details thereof; and (c) the time by which the Government is likely to take a decision in this regard? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU) (a) to (c): ‘Land’ and ‘Colonization’ are State subjects. However, by deriving the powers from concurrent list of seventh schedule of the Constitution of India, the Real Estate (Regulation and Development) Act, 2016 [RERA] was enacted by the Parliament to regulate the contractual relationship between homebuyers and promoters. Prior to enactment of RERA, there was no central regulatory framework for Real Estate Sector. RERA aims to ensure transparency & accountability in the Real Estate Sector, thereby protecting the interests of the homebuyers. Under the provisions of RERA, all ongoing / incomplete projects which have not received completion certificate and new real estate projects are required to be registered with the concerned Regulatory Authority. Further, the promoter is mandated to update Quarterly Progress Reports of its project on the website of the Real Estate Regulatory Authority. …2/--2- RERA contains provisions like Section 4(2)(l)(D) mandating the developer to deposit 70% of the amount collected from the homebuyers in a separate bank account to avoid diversion of fund and stalling of projects. RERA also provides various provisions to take stringent action against any defaulting developer. On lapse or revocation of the registration under RERA, the Regulatory Authority, in consultation with the appropriate Government, is empowered to take action for carrying out the remaining development works of the project by competent authority or by association of allottees. Moreover, Ministry of Housing and Urban Affairs regularly conducts meetings with all the stakeholders including representatives of Homebuyers’ Associations & Real Estate Developers, State Real Estate Regulatory Authorities, Financial Institutions, etc. for effective implementation of RERA. Further, as per Section 41 of RERA, Central Advisory Council (CAC) has been constituted under the Chairmanship of Hon’ble Minister of Housing and Urban Affairs to advise and recommend the Central Government on all matters concerning the implementation of the Act, including safeguarding the interests of the homebuyers. *****