Better to abolish RERA, it only helps builders: Supreme Court

The Supreme Court on Thursday took a critical view of the functioning of real estate regulatory authorities, observing that they should be abolished as they only aid builders [State of Himachal Pradesh vs Naresh Sharma]

A Bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi remarked that States should reflect on the purpose behind introduction of Real Estate Regulatory Authority (RERA).

"All States should now think of the people for whom the institution of RERA was created. Except facilitating builders in default, it is not doing anything else. Better to just abolish this institution," CJI Kant said.

The Court made the observation while hearing an appeal challenging Himachal Pradesh High Court's decision to stay a State government notification for shifting the State RERA office to Dharamshala.

In the order passed last year, the High Court had noted the decision to shift RERA had been taken "without even identifying the alternative office place."

"We are of the considered opinion that the Notification dated 13.06.2025 shall remain stayed till further order and the subsequent order that the 18 outsourced employees further on their application have been directed to be adjusted in other Boards and Corporations since the same would render the functioning of RERA defunct," the High Court had said.

Today, the top court interfered with the High Court order and permitted the State to shift the RERA office to Dharamshala from Shimla. It also ordered shifting of the appellate tribunal.

"With a view to ensure that persons affected by RERA orders are not inconvenienced, the principal appellate is also moved to Dharamshala," the Bench directed.

Senior Advocate Madhavi Divan appeared for the State.

Earlier in a similar case, the Supreme Court had set aside the High Court stay to shift the headquarters of the Himachal Pradesh Commission for Backward Classes from Shimla to Dharamshala.