The largest group of homebuyers is calling for the establishment of a Rera Monitoring Committee (RMC), as they believe that real estate regulators (RERAs) have not effectively implemented the real estate regulation law. They have noted that several housing projects have not been registered, despite it being mandatory, and that there have been delays in the completion of projects that began after the central law came into effect.

The Forum For People’s Collective Efforts (FPCE), which was involved in campaigning for the RERA law, has referred to the findings and recommendations of the Amitabh Kant committee, which was created by the housing ministry to improve the monitoring of regulator performance. They suggest that the committee should holistically examine all the issues in the real estate sector and recommend steps to prevent future situations of project delays.

In a letter to housing minister Hardeep Singh Puri, the FPCE has urged the composition of the RMC to include homebuyers, respected independent individuals, and reputable non-profit organizations. They propose that builders or their organizations should not be involved. The primary role of the RMC would be to scrutinize deviations, operational practices, and the overall functionality and intent of the RERA authorities, ensuring that they align with the true spirit of RERA implementation.

The FPCE highlights the recommendation of the high-powered committee for mandatory registration with RERA for all real estate projects. They remind that promoters are obliged by law to register their projects according to the central law.

Regarding the panel’s observation that developers must maintain detailed records of their projects, including financial statements, legal documents, and construction status reports, the FPCE asserts that promoters are not adhering to the requirement of updating project information every quarter. They also claim that regulatory authorities are not taking sufficient action to enforce this requirement. The FPCE believes that the authorities should impose penalties for non-compliance rather than simply issuing notices after significant periods of default, as this enforcement is inadequate.

The FPCE points out that the committee’s recommendation, which allows projects initiated after the implementation of the law and delayed for more than two years to participate in the state government/ RERA-led resolution process, suggests that even projects started after RERA are experiencing delays and issues. This raises concerns about the effectiveness and performance of RERA in preventing project delays and ensuring timely completion.

Regarding the recommendation of granting a three-year extension to all projects without any payment to the authority, the FPCE argues that this proposal does not consider the individual timelines necessary for completing projects. In many cases, the required period may be much shorter than three years. Additionally, the FPCE emphasizes that there is no compensatory provision for suffering homebuyers. While this extension may offer relief to builders, it could financially and mentally burden homebuyers who have already endured prolonged project delays. The FPCE believes that an additional three-year extension without compensation could be detrimental and potentially break homebuyers.

Among the 1,414 new projects, 37% (530) are located in the National Capital Region (NCR), while the remaining 63% (884) are in non-NCR areas. These new projects are mostly emerging in cities such as Jhansi, Bareilly, Moradabad, Agra, Mathura, and Vrindavan.