Lok Sabha Question No. 6232 (UNSTARRED), answered on 2026-04-02
Subject: Strengthening RERA, 2016
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Shri Jai Prakash

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 6232

TO BE ANSWERED ON APRIL 02, 2026

## STRENGTHENING RERA, 2016

No. 6232.     SHRI JAI PRAKASH:

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

- (a) whether  the  Government  is  contemplating  giving  more  teeth  to  Real Estate (Regulation and Development) RERA Act, 2016 as it has become dysfunctional  and  did  not  come  out  with  the  expectation  of  the  people and  also  have  failed  to  protect  homebuyers  which  is  their  intended purpose and if so, the details thereof;
- (b) whether  the  Government  is  considering  making  the  Act  homebuyer
- friendly and if so, the details thereof; and
- (c) the  time  by  which  the  Government  is  likely  to  take  a  decision  in  this regard?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU)

- (a) to (c): 'Land'  and  'Colonization'  are  State  subjects.  However,  by deriving  the  powers  from  concurrent  list  of  seventh  schedule  of  the Constitution of India, the Real Estate (Regulation and Development) Act, 2016 [RERA] was enacted by the Parliament to regulate the contractual relationship between homebuyers and promoters.

Prior to enactment of RERA, there was no central regulatory framework for Real Estate Sector. RERA aims to ensure transparency & accountability in the Real Estate Sector, thereby protecting the interests of the homebuyers. Under the provisions of RERA, all ongoing / incomplete projects which have not received completion certificate and new real estate projects are required to be registered with the concerned Regulatory  Authority.  Further,  the  promoter  is  mandated  to  update Quarterly  Progress  Reports  of  its  project  on  the  website  of  the  Real Estate Regulatory Authority.

RERA contains provisions like Section 4(2)(l)(D) mandating the developer to  deposit  70%  of  the  amount  collected  from  the  homebuyers  in  a separate bank account to avoid diversion of fund and stalling of projects. RERA also  provides  various  provisions  to  take  stringent  action  against any defaulting developer. On lapse or revocation of the registration under RERA,  the  Regulatory  Authority,  in  consultation  with  the  appropriate Government, is empowered to take action for carrying out the remaining development works of the project by competent authority or by association of allottees.

Moreover,  Ministry  of  Housing  and  Urban  Affairs  regularly  conducts meetings with all the stakeholders including representatives of Homebuyers' Associations & Real Estate Developers, State Real Estate Regulatory Authorities, Financial Institutions, etc. for effective implementation  of  RERA.  Further,  as  per  Section  41  of  RERA,  Central Advisory Council (CAC) has been constituted under the Chairmanship of Hon'ble Minister of Housing and Urban Affairs to advise and recommend the Central Government on all matters concerning the implementation of the Act, including safeguarding the interests of the homebuyers.

*****