CJI Delivers Scathing Critique of State RERA Bodies, Demands Immediate Action
Chief Justice of India Surya Kant issued a powerful condemnation on Thursday regarding the functioning of state Real Estate Regulatory Authorities (RERAs), asserting that most have transformed into "rehabilitation centers for retirees" rather than institutions designed to safeguard homebuyers' interests.
The Supreme Court justice emphasized that states must urgently "revisit and rethink the very purpose of constituting the RERA," noting that the very citizens these bodies were established to protect now feel "completely depressed, disgusted and disappointed." He observed that "the reality is that none of them is getting any effective relief" from these regulatory authorities.
Odisha's RERA Reflects National Concerns with Retiree Dominance
In Odisha, the Real Estate Regulatory Authority exemplifies these systemic issues, with its leadership entirely composed of retired officials—a chairperson and two members occupying the top positions. This structure raises significant questions about effectiveness, accountability, and institutional vitality.
Even recent appointments intended to strengthen the body—a land expert and a civil engineer—were retirees, continuing the pattern that has drawn criticism from housing advocates and legal experts alike.
Alarming Enforcement Data Reveals Systemic Failures
Recent data presented in the Odisha state assembly paints a troubling picture of enforcement challenges. Over the past five years, 297 cases were forwarded to the Khurda district collector for penalty recovery from defaulting builders, yet nearly all remain pending, indicating a virtually stagnant enforcement mechanism.
Additional data from ORERA's own records, currently available publicly, shows that between 2017 and 2024, authorities imposed a staggering Rs 6.89 crore in penalties on real estate promoters, but recovered only Rs 23 lakh—a mere fraction of what was levied. The majority of these cases involve plotting projects in and around Bhubaneswar, highlighting localized enforcement challenges.
Experts Echo CJI's Concerns, Call for Structural Reforms
Real estate analyst Bimalendu Pradhan stated that Odisha's statistics clearly validate the Chief Justice's apprehensions. "The order execution of ORERA continues to remain poor, and the latest data only proves it again," Pradhan explained. "RERA was meant to safeguard homebuyers' interests, but the impact is getting diluted," he added, stressing the necessity for immediate government intervention.
Housing activists in Odisha argue that the state's RERA has focused predominantly on regulatory functions—issuing notices, conducting hearings, and compiling penalty orders—while neglecting its developmental mandate under the Real Estate (Regulation and Development) Act of 2016.
Activist Sarat Dash highlighted that "the law empowers RERA to even prescribe construction materials like bricks, cement and TMT standards. But in Odisha, this part is missing so far, which is a cause for concern." Dash advocated for a shift from a complaint-driven system to a development-oriented regulatory model that proactively ensures construction quality and consumer protection.
Government Response and Path Forward
A senior official from the housing and urban development department responded to the criticism by stating that the government is actively working to enhance enforcement mechanisms. "We took steps to ensure quicker execution of ORERA orders, including strengthening coordination with the district administration and development authorities," the official disclosed.
With the Supreme Court now openly questioning the credibility of RERA institutions nationwide, experts emphasize that Odisha must comprehensively overhaul its approach. This includes appointing domain specialists rather than retirees, prioritizing enforcement and penalty recovery, and implementing real-time oversight of ongoing real estate projects to restore public confidence in the regulatory framework.
