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The Forum for People's Collective Efforts (FPCE) has urged the Ministry of Housing and Urban Affairs to amend the Real Estate (Regulation and Development) Act, 2016 (RERA), calling for measures to assess developers' past records before granting new project approvals. The association also sought provisions ensuring compensation for buyers if promised amenities are not delivered and demanded uniform refund rules for cancellations. FPCE's president Abhay Upadhyay stressed the need for stronger oversight and stricter enforcement to protect homebuyers from unscrupulous builders.
The homebuyers' body, Forum for People's Collective Efforts (FPCE), has appealed to the Union Ministry of Housing and Urban Affairs to amend the Real Estate (Regulation and Development) Act, 2016 (RERA), with an emphasis on introducing a mechanism for verifying the track record of developers before allowing them to launch new projects for sale. Advertisement
The FPCE also proposed that the Act should include a provision ensuring compensation for homebuyers if developers fail to deliver the promised facilities and amenities in their projects. Furthermore, the association called for a uniform rule governing the refund of money in cases where buyers cancel their property bookings.
FPCE President Abhay Upadhyay, who also serves as a member of the Central Advisory Council, RERA, wrote to the Union Minister of Housing and Urban Affairs, Manohar Lal, urging amendments that would enhance regulatory power and strengthen consumer protection. Through his letter, Upadhyay highlighted the significant gaps in the current legislation, which he said have led to widespread injustice for homebuyers across the country.
The association proposed adding a dedicated section in the Act to address cases where builders fail to provide the promised project facilities and amenities. Pending such amendments, FPCE suggested that the ministry issue a standard operating procedure (SOP) to all RERA authorities, directing them to ensure developers deposit adequate funds in escrow accounts to complete any unfinished amenities. It recommended that regulators closely monitor the use of these funds to guarantee timely completion.
The FPCE further raised concern that there was currently no formal process to verify a promoter's past conduct before a new project registration. According to the association, RERA authorities do not assess whether a promoter has cleared all dues owed to allottees from previous projects or settled penalties imposed by any court or quasi-judicial body. This lack of scrutiny, the association stated, has allowed developers with poor records to continue launching new projects, thereby putting new buyers at risk.
Upadhyay proposed that the ministry should make it mandatory for RERA authorities to obtain a declaration from every promoter before registering a new project. This declaration would require developers to confirm that they have cleared all dues to allottees and authorities across India, including any penalties levied by relevant forums or courts. The declaration, he added, should also apply to group companies with the same brand name or common promoters and shareholders.
He further recommended that any developer found submitting a false declaration should face a nationwide ban from the real estate business. Upadhyay described these gaps as requiring immediate policy intervention, either through legislative amendments or interim SOPs to all state RERA authorities.
He pointed out that builders have been exploiting homebuyers by delaying projects, misusing funds, and breaching agreements while RERA authorities often fail to act despite having adequate powers to investigate and impose penalties. He observed that the silence and inaction of several regulators raised doubts about their willingness to enforce accountability, and in some cases, hinted at possible collusion with errant builders.
Upadhyay also remarked that the RERA registration number had yet to become a mark of consumer trust, unlike the FSSAI certification that assures safety in the food industry. He emphasised that the ministry must urgently intervene to address the regulatory shortcomings that continue to disadvantage homebuyers across India.
The FPCE's recommendations underscore persistent issues within the real estate regulatory system, particularly concerning developer accountability and consumer protection. By proposing stricter background checks, uniform refund rules, and binding financial safeguards, the association seeks to strengthen RERA's framework to better serve homebuyers. Upadhyay's appeal reflects growing frustration among consumers over lax enforcement, urging the ministry to step in and restore confidence in the real estate regulatory process through decisive policy action.
Source - PTI
5th Jun, 2025
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