TheSupreme Courton Thursday made scathing observations on the functioning of theReal Estate Regulatory Authority(RERA), saying the body has failed in its purpose and is instead “only facilitating defaulting builders.” A bench of Justice Surya Kant and Justice Joymalya Bagchi said homebuyers, whom RERA was meant to protect, are “completely depressed, disgusted and disappointed,” and remarked that it would not mind if the institution were abolished altogether. The remarks came while the Supreme Court of India allowed the Himachal Pradesh government to shift the RERA office to a location of its choice.
"Except facilitating the builders in default, this institution is doing nothing. Better abolish this institution, we don't mind that," the CJI said. "...high time that all the states should revisit and rethink of even constituting this authority," the bench said.
The bench issued a notice on a plea filed by the Himachal Pradesh government and others challenging an order of the Himachal Pradesh High Court in a matter pertaining to the shifting of the state RERA office from Shimla to Dharamshala. The high court had earlier stayed a June 2025 notification concerning the shifting of RERA office till further order. Later, in its order passed on December 30, 2025, the high court directed the continuance of the interim order. The top court stayed the high court's December 30 direction.
In its petition filed in the apex court through advocate Sugandha Anand, the state said the decision to shift the Himachal Pradesh RERA office from Shimla to Dharamshala was taken to "decongest" Shimla city, and it was purely on administrative considerations.
Senior advocate Madhavi Divan, appearing for the state, told the bench about the matter and said, "This is about the RERA, which we seek to shift to Dharamshala".
An advocate, appearing for the respondent, said 90 per cent of the projects with which the authority deals are in Shimla, Solan, Parwanoo and Sirmaur, which are within a radius of a maximum of 40 km. He said around 92 per cent of complaints which are pending before RERA are only from these districts, and there are only 20 projects in Dharamshala.
When the bench was informed that a retired IAS officer was appointed in RERA, the CJI said, "In every state, it has become a rehabilitation centre. These authorities are all occupied by these persons.
"The people for whom this institution was created, they are completely depressed, disgusted and disappointed. None of them are getting any effective relief. For whom this institution actually is now serving, you will find out when you meet these people," the CJI said.
The advocate general of Himachal Pradesh told the bench that, as per a policy decision, the state is developing Palampur, Dharamshala and other cities. The top court observed that Shimla is "completely over exhausted".
While issuing notice on the plea, the bench said, "The state is permitted to shift the office of RERA to the place of its choice. However, it shall be subject to the final outcome of the writ petition pending before the high court".
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