A nationwide homebuyers’ body has urged the Centre to address key loopholes in the Real Estate (Regulation and Development) Act, 2016 (RERA), warning that the current framework continues to leave property purchasers exposed to exploitation.

In a letter to Union Housing and Urban Affairs Minister Manohar Lal Khattar, the Forum for People’s Collective Efforts (FPCE) called for the immediate issuance of Standard Operating Procedures (SOPs) to state RERA authorities, highlighting that several regulators have failed to enforce penalties or ensure compliance, according to a report by The Economic Times.

The association flagged major gaps in the law — including missing project amenities, lack of promoter verification, unclear refund norms, and unchecked fund collection — which it said have undermined the very purpose of RERA as a trust-building mechanism for homebuyers.

FPCE president Abhay Upadhyay, who is also a member of the RERA Central Advisory Council, said the regulatory framework has “failed to instil trust” among homebuyers, with several authorities “acting as passive spectators” despite being armed with enforcement powers.

“The RERA registration number has failed to become a symbol of trust. It has instead become a mere formality that builders flaunt while continuing to flout the law,” Upadhyay said in the letter, adding that many RERA authorities have not exercised their powers to penalise errant developers or ensure compliance with orders.

The association has highlighted four major shortcomings in the current framework. The first issue relates to the lack of a completion mechanism of promised amenities such as clubhouses, swimming pools, or landscaped gardens which are missing or delayed. The existing provisions under Section 18, which only deal with compensation for delay in possession, are “grossly inadequate,” FPCE said.

It urged the ministry to direct developers to deposit adequate funds in escrow accounts for completion of such missing amenities and also compensate buyers until all facilities are completed and functional.

The second concern involves the absence of a verification mechanism for promoters’ track records before granting registration for new projects. FPCE has suggested that promoters be required to declare that all dues, penalties, and compensation amounts payable to buyers, authorities, or courts across India have been cleared including by their group entities.

“This single measure will make recovery from builders automatic and prevent errant promoters from launching new projects while defaulting on old ones,” Upadhyay said. He added that such a system would also prevent the frequent delays in property registrations that plague regions such as Noida and Greater Noida, where projects’ registrations are often stalled due to unpaid dues between builders and authorities.

The letter further sought a clear exit policy for homebuyers to remove uncertainty following a recent Supreme Court judgment distinguishing between ‘genuine homebuyers’ and ‘speculative investors.’ FPCE proposed that buyers be entitled to a full refund within one year of booking and a 90% refund thereafter, to ensure fairness and predictability.

Lastly, FPCE recommended barring developers from collecting 100% of the unit cost until the entire project including all common areas and promised amenities is completed and a Completion Certificate is issued.