Exploitation in Real Estate Despite RERA.

Exploitation in Real Estate Despite RERA

Despite RERA, exploitation by builders and lapses by authorities continue due to the absence of strong  Governance standards including ethical and moral accountability.The impact is not limited to infrastructure delays; it affects everyday living and the emotional, social, and financial well-being of homebuyers. Even reputed builders and large corporates often fail to meet expectations, leaving buyers feeling misled. While the economy may be progressing, the promised improvement in quality of life and peace of mind for citizens remains unfulfilled.

A clear example is seen in projects developed by large corporate builders, including L&T’s housing ventures. Several buyers who took possession of flats more than a decade ago allege that commitments made in the sale deeds—such as UDS, refund or proper handling of corpus funds—have not been honoured. Instead, technical and legal provisions are cited to deny rightful claims, despite buyers having invested their life savings and retirement funds in good faith.

True progress will come only when governance becomes more responsive and sensitive, and when ethical conduct is enforced alongside legal compliance. Economic growth must translate into fairness, trust, and dignity in everyday living. Peaceful life is what is aspired by average citizens which cannot and should not be ignored by those who matter and run the system and administration. There can definitely be a mechanism to assess the performance of Corporates engaged in real estate deals in particular as to what extent they do justice to the community, their own customers and the society in terms of well defined parameters and performance, Apart from own self assessment by the corporates themselves, there can be a separate evaluation of their performance by the related  Authorities, and independent Social Audit teams. A sort of markets' own assessment with transparency is the need of the hour to penalise or reward the corporates . Corporates' annual reports should incorporate a certificate from a befiiting and responsible authority to the effect that there are no customers' grievances and court cases pending against the corporates what soever.  

( This is a modified version of the comment given in response to an Article appearing in Money Life on Housing Societies Problems and Solutions on 1st Jan 2026 Issue)

T V G Krishnan

A Senior Citizen 

(personal Views)