A forum representing homebuyers has expressed deep concern over the shortcomings of the Real Estate (Regulation and Development) Act, 2016 (RERA) and has urged the Union Consumer Affairs Ministry to intervene to protect consumer interests. The forum, Forum for People’s Collective Efforts (FPCE), has highlighted that despite RERA being in place for several years, many homebuyers continue to face issues such as misleading advertisements, unfair contracts, and delays in project completion.
According to government data, around 50,000 complaints pertaining to the real estate sector were pending with consumer forums as of July 31, 2024. This indicates that RERA has not been able to effectively address the concerns of homebuyers. Abhay Upadhyay, President of FPCE and a member of the government’s Central Advisory Council under the RERA Act, has emphasized the need for the Consumer Affairs Ministry to step in and issue sector-specific guidelines to safeguard the interests of homebuyers. He noted that many consumers are opting to approach consumer forums rather than RERA, highlighting the perceived shortcomings of the regulatory body.
The FPCE has raised specific concerns about misleading advertisements, unfair contracts, and trade practices prevalent in the real estate sector. They have stressed the need for clear guidelines to protect homebuyers from disproportionate demand vis-Ã -vis work completed. While RERA provides consumers with the option to withdraw pending complaints from consumer forums and approach RERA, many have chosen not to do so. This suggests that RERA has not been able to effectively address their concerns.
The forum’s appeal to the Consumer Affairs Ministry underscores the urgent need for stronger consumer protection measures in the real estate sector. By issuing sector-specific guidelines, the ministry can help to ensure that homebuyers are adequately protected from unfair practices and that RERA is able to fulfill its intended purpose of regulating the real estate market.
