The Real Estate (Regulation and Development) Act, 2016 (RERA) is completing 10 years of regulating India’s real estate sector on 1 May 2026, with the twin objectives of protecting homebuyers’ interests and promoting transparency. Introduced after a series of projects collapsed and developers were accused of duping buyers, RERA ushered in several key reforms, including mandatory project registration, escrow requirements mandating 70% of buyer funds be set aside for construction, and quarterly updates on construction progress. It also required developers to disclose project details and laid down penalties for delays beyond stipulated timelines.
However, RERA has its shortcomings, and questions are often raised about whether the law is fully meeting its objectives. The Supreme Court recently made sharp observations on the functioning of RERA, questioning whether the law has drifted from its original purpose of protecting homebuyers and instead become a shield for defaulting builders. Experts also point to weak enforcement, low recovery rates and developers often ignoring penalties due to reliance on slow-moving state mechanisms.
Major hits
Despite these shortcomings and wide differences in implementation across states, experts and developers say the Act has played a significant role in formalising the real estate sector.
Ankita Sood, National Director–Research at Knight Frank India, said RERA’s biggest achievement has been bringing much-needed transparency, accountability and structure to India’s real estate market.
“Before 2016, the industry was largely fragmented and unorganised, with limited oversight. The Act helped formalise the ecosystem, discouraging fly-by-night developers and effectively straightjacketing the industry, leading to consolidation in favour of larger, more credible developers. Earlier, markets such as NCR were plagued by project defaults, litigation challenges and liquidity stress. However, with the introduction of RERA, the overall health and credibility of these markets have improved significantly,” Sood said.
Ensuring timely delivery and providing for a refund clause have strengthened buyers’ position in property transactions.
“Buyers have an unqualified right under the Act to either withdraw from a delayed project and seek a refund, or remain in the project and claim compensation for delayed possession. These safeguards have helped protect the rights of buyers/allottees,” said Manmeet Kaur, Partner at Karanjawala & Co.
Ram Raheja, Managing Director, S Raheja Realty, said that for credible long-term developers, RERA has brought a positive shift.
“Over the last decade, the industry has matured meaningfully. Homebuyers are more informed and confident, and the overall quality of delivery has improved. While the transition required adjustment, it has ultimately strengthened the sector’s foundations and created a more resilient ecosystem,” he said.
Nikhil Madan, Managing Director at Mahima Group, said one of the most visible shifts has been in buyer sentiment.
“Increased transparency around timelines, stronger disclosure norms and structured financial governance have contributed to greater trust and confidence among homebuyers,” Madan said.
Shortcomings weighing on benefits
Sunitha Rajesh, Partner at CMS INDUSLAW, said RERA’s impact has been uneven.
“Delays in project completion continue due to approval-related hurdles, financial difficulties faced by developers and limited enforcement capacity at the State RERA level. Although the law promises time-bound grievance redressal, many buyers continue to face prolonged proceedings and difficulties in enforcing orders,” she said.
Rajesh said there are several gaps in the law, including the absence of a clear process for granting force majeure extensions, weak enforcement of penalties, limited emphasis on construction quality and the lack of a structured approach to reviving stalled projects.
In addition, unresolved overlaps between RERA and insolvency proceedings have adversely affected ongoing housing projects, she said. When a developer enters insolvency, RERA-ordered compensation or refunds are often paused, while the Interim Resolution Professional (IRP) takes control of assets.
Kaur of Karanjawala & Co said the multiplicity of litigation across forums such as RERA, NCLT and NCDRC can lead to divergent directions from different adjudicating bodies, potentially delaying project completion.
“It is advisable to bring all homebuyer disputes — including relief for project completion, refunds and compensation claims — before a single adjudicating authority to avoid multiplicity of litigation,” Kaur added.
Sood of Knight Frank highlighted that the pace of dispute resolution remains a concern. Only around 1.6 lakh cases have been disposed of over the past decade, which appears modest relative to the scale of the market, where nearly 300,000 homes are sold annually on average in the primary market.
The way forward
Rajesh of CMS INDUSLAW said making RERA truly effective will require targeted legislative amendments, including mechanisms for force majeure extensions, stronger penal provisions to create meaningful deterrence, improved oversight of construction quality, structured processes for reviving stalled projects and better coordination with insolvency authorities.
There is also a growing call for greater uniformity in implementation across India.
“The next chapter for RERA should be ‘One Nation, One RERA’. Reducing excessive state-level divergence and moving towards greater national uniformity would deliver better outcomes for both homebuyers and developers. There is a clear need to harmonise state-level rules so stakeholders operate under broadly similar standards regardless of geography,” Sood said.
She added that dispute resolution timelines must improve through stronger capacity at regulatory authorities and appellate tribunals, enabling faster and more effective enforcement.
“Deeper digital integration, through unified dashboards, real-time project tracking and seamless access to project documents, can significantly enhance transparency and ease of compliance. Equally important is addressing external bottlenecks such as approval delays and land title inefficiencies, which often affect project delivery timelines but lie outside RERA’s direct ambit,” she said.
Builders, meanwhile, are seeking single-window clearances for projects. Dhaval Ajmera, Director–Corporate Affairs at Ajmera Realty, said improving RERA’s effectiveness would require simplifying the approval process and fully automating it.
“Overall, RERA has been a game-changer. It has provided a framework of accountability and sustainability for the industry. While there is scope for improving approvals and implementation, the trajectory remains promising for buyers and credible developers alike,” Ajmera added.