8 hours ago
The Supreme Court on Thursday sharply criticised the functioning of Real Estate Regulatory Authorities (RERAs) across several States, observing that they appeared to be doing little “except facilitating builders in default” and suggesting that it was perhaps “better to just abolish this institution”.
A Bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi made the remarks while hearing an appeal filed by the Himachal Pradesh government against the High Court order that had stalled its decision to relocate the State RERA office from Shimla to Dharamshala.
“All States should now think of the people for whom the institution of RERA was created. Except facilitating builders in default, it is not doing anything else. Better to just abolish this institution,” the Chief Justice of India observed during the proceedings.
Senior Advocate Madhavi Divan, appearing for the State, submitted that the public interest litigation before the High Court had been instituted by a property dealer. She argued that the State was within its administrative powers to shift the headquarters.
Opposing the appeal, the respondent’s counsel contended that the petitioner’s credentials had been placed on record before the High Court and that the court was competent to examine the matter, including by appointing an amicus curiae if required.
It was further argued that RERA had already faced delays in appointing a Chairperson, and shifting the office would inconvenience stakeholders largely concentrated in Shimla.
According to the respondent, nearly 90 per cent of the properties and complaints under RERA’s jurisdiction were based in Shimla, while Dharamshala accounted for a significantly smaller share.
In its earlier order, the Himachal Pradesh High Court had stayed the June 13, 2025, notification relocating the office, noting that the decision had been taken “without even identifying the alternative office place”.
The High Court had also recorded that 18 outsourced employees were directed to be adjusted in other boards and corporations, which, in its view, would render the authority’s functioning defunct.
“We are of the considered opinion that the Notification dated June 13, 2025, shall remain stayed till further order and the subsequent order that the 18 outsourced employees further on their application have been directed to be adjusted in other Boards and Corporations since the same would render the functioning of RERA defunct,” the High Court had said.
After hearing the parties, the Supreme Court set aside the interim stay and allowed the State to proceed with shifting the RERA headquarters to Dharamshala. It also directed that the principal appellate authority be relocated to the same place to ensure that litigants were not inconvenienced.
“With a view to ensure that persons affected by RERA orders are not inconvenienced, the principal appellate authority is also moved to Dharamshala,” the Bench ordered.
The court noted that in an earlier, comparable matter, it had also lifted a High Court stay blocking the relocation of the Himachal Pradesh Commission for Backward Classes from Shimla to Dharamshala.
