The Supreme Court has issued a landmark directive to bolster the functioning of real estate regulatory authorities (RERAs) across India, including the Odisha Real Estate Regulatory Authority (ORERA).

In the case of Mansi Brar Fernandes vs Shubha Sharma and others on September 12, the court mandated states and Union Territories to ensure that RERA bodies are adequately staffed, properly equipped, and fully capable of regulating the sector.

The order highlights the need for legal and consumer expertise within RERAs, strict due diligence before project approvals, and the creation of standard operating procedures for escrow accounts to ensure transparency and timely project execution.

The SC order emphasises the need for adequate staffing and infrastructure within RERA authorities. It stipulates that each RERA must include at least one member who is a legal expert or consumer advocate with proven expertise in real estate. The move is intended to prevent RERA bodies from becoming “toothless tigers” and to facilitate the timely implementation of orders.

Key directives include the requirement for RERA authorities to conduct thorough diligence before approving projects. The court warned that any failure in this regard, leading to a miscarriage of justice, would be considered “an error unpardonable in law” and could result in strict judicial intervention.

Additionally, the SC instructed RERA bodies to establish standard operating procedures (SOPs) for escrow accounts within six months. The SOPs are crucial for projects in their nascent stages, ensuring that funds from allottees are managed transparently and disbursed in alignment with project progress.