Over 75% of State RERA Regulators Fail to Publish Mandatory Annual Reports
NEW DELHI: A shocking revelation has emerged from the homebuyers' body FPCE, which claimed on Friday that more than 75% of state real estate regulators, known as RERAs, have either never published annual reports, discontinued their publication, or failed to update them. This negligence persists despite clear statutory obligations and repeated directions from the Ministry of Housing and Urban Affairs.
Critical Data Gap in Real Estate Transparency
FPCE released a detailed status report covering 21 RERAs as of February 13, highlighting a severe lack of compliance. The availability of updated annual reports is absolutely crucial because these documents contain vital performance data on RERAs. This includes project completion status categorized by timely completion, completion with extensions, and incomplete projects.
Furthermore, the ministry's prescribed format for these reports mandates the inclusion of specific details such as the actual execution status of refund orders, possession orders, and compensation orders. It also requires recovery warrant execution details with monetary values and a comprehensive list of defaulting builders.
Implications for Homebuyers and Policy Makers
FPCE emphasized that annual report data is not only essential for homebuyers to assess the credibility and effectiveness of the regulatory system but is equally necessary for both state and central governments. This data is critical for framing effective policies, designing incentivization schemes, and developing robust tax policy frameworks for the real estate sector.
"Unless we have credible data proving that after RERA the real estate sector has improved in terms of delivery, fairness, and keeping its promises, we are merely firing in the air," stated FPCE president Abhay Upadhyay. Upadhyay, who also serves as a member of the government's Central Advisory Council on RERA, underscored the importance of transparency.
States with Major Compliance Failures
According to the details shared by FPCE, seven states have never published a single annual report since RERA's implementation. These states include Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Himachal Pradesh, and Goa. Additionally, nine states, which initially published reports, have now discontinued the practice. This group includes major real estate markets such as Maharashtra, Uttar Pradesh, and Telangana.
Regulatory Failure Undermines the System
Upadhyay pointed out a significant irony: when regulators themselves fail to follow the law, they lose the moral and legal authority to demand compliance from other stakeholders. "Their failure emboldens builders and weakens the very system they are meant to safeguard," he warned. This lack of accountability could lead to increased non-compliance by developers and further erode trust in the real estate regulatory framework.
The failure to publish these mandatory reports not only violates statutory obligations but also creates a data vacuum that hampers informed decision-making. Without accurate and timely information, it becomes challenging to gauge the true impact of RERA on improving project delivery, ensuring fairness, and protecting homebuyers' interests across India.
