IS IT TIME FOR RERA 2.0?

The Indian real estate sector long plagued by lack of accountability has changed significantly with the introduction of the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA. It was hailed as a game-changer for the real estate sector, but along the way, its implementation has been uneven and inconsistent across states. By mandating project registration, escrow norms, and disclosures, RERA promised to restore homebuyer trust and bring long-overdue efficiency to the real estate sector. Almost a decade later, its patchy enforcement and regulatory loopholes, has meant that homebuyers remain defenseless.

Another frustrating aspect of present RERA authorities is that almost all RERA chiefs are retired IAS or other officers, rather than housing experts or consumer advocates. Developers routinely challenge RERA orders through the appellate process, effectively extending dispute resolution t imelines by years.

The “federal” nature of RERA has created a patchwork of standards rather than a unified national framework.


Homebuyers Disappointments By RERA
Various consumer forum reports and judicial comments in 2025 indicate continued disappointment among homebuyers with RERA. The issues range from weak state level authorities to prolonged delays in executing orders.

RERA a “toothless tiger - RERA authorities lack of power to enforce their own orders, have undermined its effectiveness. While adjudicators can issue refunds or penalties, execution relies on state agencies like police and district collectors. In September 2024 Justices Surya Kant and Bhuyan scolded authorities that RERA “has become a rehabilitation centre for former bureaucrats lacking expertise in the real estate sector, who have frustrated the entire scheme of the Act”. In March 2025 a bench observed that RERA’s functioning was “disappointing” and acknowledged arguments that the Act had “failed in its implementation”.

Chronic Project Delays - Overwhelming majority of RERA complaints originate from developers consistently missing t imely delivery of projects. An estimated 4.8 lakh housing units across India are delayed by over three years, as of 2025. Quite a few, large-scale, stalled projects by major builders have required Supreme Court intervention to appoint agencies like NBCC for completion. often extending delays by several years. Homebuyers’ forums complaint that builders get project extensions sanctioned from RERA on one pretext or the other, leaving buyers without any definitive possession timelines.

Broken Promises – There have been unaccountable instances across the states where, even after a favorable order, buyers often wait months or years for it to be implemented. The non execution of orders due to legal loopholes, compounded by builders’ delaying tactics, including filing appeals, has shaken the trust of homebuyers in the system. Many specific instances have emerged where builders have escaped RERA scrutiny by applying for OC just before RERA’s launch. When buyers later suffered quality defects or non-delivery of contractual amenities etc, RERA refused relief on procedural grounds, leaving homeowners in limbo.

Institutional Leadership Deficiencies: The RERA bodies are led by officials lacking specialized training in legal or real estate matters, in addition to being understaffed. Homebuyers have voiced grave concerns over the sluggish execution of recovery warrants issued against errant builders. In addition, lack of cooperation from developers and a cumbersome approval process hinders regulators’ ability to resolve issues.


Smaller projects, redevelopment ventures and secondary market transactions often slip through the regulatory cracks, leaving a large part of thereal estate buyers outside RERA purview.

Is RERA 2.0 Needed? Absolutely
Procedural hurdles continue to hamper progress even as buyers demand strong enforcement. As the promise of reform remains only partially fulfilled. The time has come to talk seriously about RERA 2.0. RERA 2.0 must be a structural overhaul. It must also address the developer’s perspective — ensuring quicker approvals, rational compliance timelines, and incentives for on-time delivery. Central Advisory Council (CAC), constituted under RERA reviewed RERA implementation, homebuyers’ grievances and developers’ issues in its meeting this month and has launched the Unified RERA Portal rera.mohua.gov.in, to provide common platform for stakeholders, that will enable sharing of best practices among States/UTs.

The Council has recommended - Standard Operating Processes to strengthen enforcement of orders, nation wide database of projects, detailed framework to get stalled projects completed and bring uniformity in RERA implementation. In conclusion, the nine years of RERA have not yet fully realized the promises made to homebuyers. Developers often delay possession despite RERA registration and pay minimal penalties or exploit legal ambiguities. RERA 1.0 was about regulation; RERA 2.0 must be about results. And this will require political will and legislative reforms. One of the major steps in this direction will be empowering the regulators to truly enforce orders. While, real estate has evolved with digital transformation and tech tools, the law too needs modernization to fast-track redressals.