The Supreme Court on February 12 delivered a scathing critique of the functioning of Real Estate Regulatory Authorities (RERAs), observing that states may need to “revisit and rethink” their continuation, and even remarking that it may be “better to abolish” them if they fail to serve homebuyers.

Hearing a matter related to the shifting of the Himachal Pradesh RERA office, the bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi said the institution appears to be doing little beyond “facilitating defaulting builders,” calling for states to reflect on the original purpose of the 2016 law, according to a report by The Hindustan Times.

“All States should now think of the people for whom the institution of RERA was created. Except facilitating builders by default, it is not doing anything else. Better to just abolish this institution,” CJI Kant said.

The Court made the observation while hearing an appeal challenging Himachal Pradesh High Court’s decision to stay a State government notification for shifting the state RERA office to Dharamshala.

In the order passed last year, the High Court had noted the decision to shift RERA had been taken “without even identifying the alternative office place,” the website reported.

“We are of the considered opinion that the Notification dated 13.06.2025 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.

The top court on Feb 12 interfered with the High Court order and permitted the State to shift the RERA office to Dharamshala from Shimla. It also ordered shifting of the appellate tribunal, the report said.

“With a view to ensure that persons affected by RERA orders are not inconvenienced, the principal appellate is also moved to Dharamshala,” the Bench directed.

The RERA Act of 2016 was enacted to regulate the real estate sector, promote transparency, safeguard homebuyers, and ensure timely project delivery.