RERA not doing anything except helping Defaulting Builders: CJI says 'Better to Abolish'

On Thursday, the Supreme Court stayed a Himachal Pradesh High Court order that had halted the State Government’s decision to shift the Real Estate Regulatory Authority (RERA) office from Shimla to Dharamshala, with Chief Justice of India Surya Kant sharply criticising the overall functioning of RERA bodies across States. Calling for a serious review of the institution’s performance, the Court’s remarks have reignited scrutiny over the effectiveness of real estate regulation in India.

The matter arose from a plea filed by the State of Himachal Pradesh challenging a High Court order that stayed the administrative decision to relocate the State RERA office. The original public interest litigation before the High Court had been initiated by a property dealer. Senior Advocate Madhavi Divan, appearing for the State, defended the decision to shift the office.

Opposing the move, counsel for the respondent argued that the petitioner’s credentials had been disclosed before the High Court and that the court could appoint an amicus if necessary. It was further contended that most real estate projects and complaints, around 90%, were concentrated in Shimla, while Dharamshala accounted for a significantly smaller share. Concerns were also raised about delays in appointing a Chairperson and the potential inconvenience to stakeholders.

A Bench comprising CJI Surya Kant and Justice Joymalya Bagchi expressed strong dissatisfaction with how RERA authorities have been functioning in several States. The Chief Justice observed that it was “high time that all the states should revisit and rethink constituting this authority,” adding pointedly, “Except facilitating builders in default, it is not doing anything else. Better to just abolish this institution.”

While examining the limited issue of the office relocation, the Court stayed the High Court’s order and allowed the Himachal Pradesh Government to proceed with shifting the RERA office to Dharamshala.

Case Title: Ankhim Holdings Pvt. Ltd. & Anr. Vs. Zaveri Construction Pvt. Ltd.

Case No.: Civil Appeal No. 779/2026

Coram: Hon'ble. Justice J.B. Pardiwala, Hon'ble. Justice K.V. Viswanathan

Advocate for the Petitioner: Adv. Ashim Sood, Adv. Saahil Memon, Adv. Senu Nizar, Adv. Ekansh Gupta, Adv. Kartikeya Jaiswal, Adv. Prateek Kundu, Adv. Karan Kumar, AOR. Pallavi Pratap,

Advocate for the Respondent: S.G. Tushar Mehta, AOR Sanjay Kapur, Adv. Shubhra Kapur, Adv. Surya Prakash, Adv. Santha Smruthi, AOR Shakti Kanta Pattanaik, Adv. Santosh Kumar,

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