RERA at 10 Years: Achievements, Gaps, and the Road Ahead for Homebuyers (2026)

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to protect homebuyers, regulate the real estate sector, and ensure timely completion of projects. As RERA completes its first decade in 2026, it is an opportune time to assess what the Act has achieved, where it has fallen short, and what reforms are still needed.

At Hashmi Law Associates (HLAPL), we have represented hundreds of homebuyers before RERA authorities and appellate tribunals. This analysis is based on our practical experience and recent data from RERA Delhi and other state RERAs.

1. Achievements of RERA in the Last 10 Years

1.1 Increased Transparency for Homebuyers

Before RERA, homebuyers had no access to project‑level information. Now, every registered project must upload approved building plans and layout, completion and occupancy certificates, quarterly progress reports (with photographs), and details of land title and encumbrances.

Impact: Homebuyers can now verify project approvals before booking, reducing the risk of illegal construction.

1.2 Mandatory Deposit of 70% Receipts in Separate Bank Account

Section 4(2)(l)(D) of RERA requires promoters to deposit 70% of the amounts realised from allottees in a separate bank account to cover the cost of construction and land. This provision has significantly reduced fund diversion.

Impact: Projects are more likely to be completed on time, and if delayed, funds remain available for completion.

1.3 Fast‑Track Dispute Resolution

RERA authorities are mandated to adjudicate complaints within 60 days (extendable by 60 days). The creation of Real Estate Appellate Tribunals (REAT) has further expedited appeals.

Impact: Homebuyers no longer have to wait 5‑10 years for civil court resolution; typical RERA complaint disposal takes 6‑12 months.

1.4 Penalties and Imprisonment for Builders

RERA empowers authorities to impose heavy penalties (up to 10% of project cost) and even imprisonment for non‑registration and non‑compliance. The 2026 amendment removed imprisonment only for homebuyers, retaining it for builders.

Impact: Builders are more careful with compliance; non‑registered projects have become rare in major cities.

1.5 Model Code of Conduct for Real Estate Agents

Real estate agents must now register with RERA and follow a code of conduct. Agents who mislead buyers or conceal facts face penalties and de‑registration.

Impact: Reduced instances of false promises and misrepresentation by brokers.

2. Persistent Gaps and Challenges (2026)

2.1 Delayed Completion Despite RERA

In many projects, especially in Noida, Greater Noida, and Gurugram, possession remains delayed by years, despite RERA registration. Causes include builder insolvency (the intersection of RERA and IBC has been problematic), litigation between builders and authorities (e.g., disputes over extra FAR, environmental clearances), and inadequate monitoring of quarterly progress reports.

2.2 Fund Diversion Still Occurs

Despite the 70% deposit rule, some builders find ways to divert funds – e.g., by inflating construction costs, using shell companies for material supply, or opening multiple accounts. The recent amendment (2026) requiring banks to report all RERA account transactions within 7 days may help, but enforcement remains weak.

2.3 RERA Orders Not Enforced Effectively

RERA authorities issue recovery certificates for unpaid amounts. However, executing these certificates often requires separate civil court proceedings, defeating the purpose of a fast‑track regime.

2.4 Lack of Uniformity Across States

Some states have weaker RERA rules (e.g., lower penalty amounts, longer adjudication periods). Homebuyers in those states receive less protection than those in Delhi, Maharashtra, or Karnataka.

2.5 Exclusion of Certain Projects

RERA applies only to projects with land area > 500 sq. m. or > 8 units. Small projects are exempt, leaving buyers of individual villas or small apartment buildings without RERA protection.

3. Impact of Recent Amendments (2026)

4. Suggestions for Further Reform

• Mandatory completion insurance: Require builders to obtain insurance covering the cost of completion in case of insolvency.
• Single‑window RERA portal across states: Enable homebuyers to file complaints against builders operating in multiple states without having to register separately.
• Automatic compensation for delay: RERA orders often require the homebuyer to claim compensation; instead, interest for delay should be automatically credited to the homebuyer's account.
• Fast‑track enforcement of recovery certificates: Empower RERA authorities to attach and sell builder's assets without separate civil court proceedings.
• Bring small projects under RERA: Remove the 500 sq. m. / 8 units exemption to protect buyers of small projects.

5. How HLAPL Can Help Homebuyers Under RERA

At Hashmi Law Associates (HLAPL), we have extensive experience in RERA litigation:

• RERA Complaints – filing complaints for delayed possession, refund, construction defects, and misleading advertisements.
• REAT Appeals – appealing adverse RERA orders before the Real Estate Appellate Tribunal.
• Enforcement – obtaining and executing recovery certificates, including attachment of builder's property.
• Group complaints (class action) – organising complaints for apartment owners' associations.
• Builder insolvency – advising homebuyers on claims in IBC proceedings (NCLT/NCLAT).