Homebuyers Demand Stronger RERA Rules to Check Builders

New Delhi: Homebuyers’ group, Forum For People’s Collective Efforts (FPCE), has urged the government to strengthen the Real Estate (Regulation and Development) Act, 2016 (RERA), highlighting gaps that leave buyers vulnerable to errant builders.

FPCE President Abhay Upadhyay has written to the Union Housing Minister, demanding amendments that would verify a builder’s track record before project registration, and introduce penalties if promised amenities are not delivered. The association also seeks a uniform refund policy in cases of unit cancellations.

Currently, RERA authorities do not have a mechanism to check whether a promoter has cleared dues from previous projects or settled obligations with central, state, or quasi-judicial authorities. As a result, builders with poor histories continue launching new projects, causing repeated losses to buyers.

Upadhyay has proposed that promoters submit a declaration confirming all dues to allottees and authorities have been cleared, applying to both the parent company and group entities with the same brand or common shareholders. False declarations, he suggests, should lead to a permanent ban from the real estate business across India.

As immediate relief, FPCE recommends that the ministry issue a standard operating procedure requiring RERA authorities to ensure developers deposit funds in escrow accounts to complete pending amenities. Regulators would monitor and enforce timely delivery of such facilities, closing the loophole of project delays.

The association emphasized that these reforms are urgent, citing cases of delayed projects, misappropriated funds, and broken agreements. “Builders are exploiting homebuyers while regulators often remain passive, raising questions about accountability,” Upadhyay said.

FPCE’s push highlights the ongoing challenges in India’s real estate sector and signals a strong demand for stricter consumer protection measures under RERA.