FPCE Asks PM Modi to Split RERA and Create a Homebuyer Protection Act

What FPCE has asked for

FPCE has asked the Prime Minister to overhaul RERA so that the law is split into two parts. Under its proposal, the promotion and development of the real estate sector would stay with the Ministry of Housing and Urban Affairs and relevant development agencies. Homebuyer protection would move to a separate legal framework.

The group proposes renaming or re-enacting RERA as the Real Estate Homebuyer Protection Act. It wants the revised law to focus on:

• homebuyer protection
• transparency
• promoter accountability
• prevention of malpractices
• effective grievance redressal

FPCE also suggests that the Department of Consumer Affairs should administer the revised law.

The case FPCE makes

FPCE President Abhay Upadhyay argues that the current framework has an inherent conflict. The same authority is expected to both promote real estate development and protect homebuyers, and the group says this conflict has weakened the law's implementation.

FPCE lists the following practices as continuing to affect buyers across the country:

• one-sided agreements
• project delays
• diversion of funds
• non-execution of regulatory orders
• mechanical project registrations
• repeated extensions in completion timelines

The group also calls for stronger accountability of regulatory authorities, so that repeated failures to enforce the law or implement orders are scrutinised. FPCE says the current system has not fully resolved problems involving delayed projects and blocked homebuyer funds. These are FPCE's claims, not official findings.

The numbers FPCE cites

According to FPCE's own 192-page report, about ₹12.44 lakh crore of homebuyers' money is trapped in delayed projects, affecting nearly 27.6 lakh families. The report covers RERA-authority records from seven states, as reported in one business news article on the letter. The figures come from FPCE's report and have not been independently audited by a government body.

Official context on the ministry's consultations

An official government release dated 30 July 2026, a written reply to the Lok Sabha on RERA implementation, says the Ministry of Housing and Urban Affairs has held regular consultations over the past year. Those consultations included homebuyers' associations, real estate developers and State Real Estate Regulatory Authorities. They covered effective implementation of RERA, standard operating procedures and amendments needed in the Act.

FPCE also notes that the ministry held an internal deliberation on strengthening the framework on 27 October 2026.

Why state governments matter

The same official release states that land and colonisation are State subjects under Entry 18 of the State List in the Seventh Schedule of the Constitution. State RERA authorities already administer the law in their areas. Any central reshaping of RERA would therefore need to work alongside state regulators, and the proposal does not, on its own, change the law.

What it means for buyers, investors and the market

For homebuyers: The proposal is aimed at stronger protection against delays, one-sided agreements and unenforced orders. Until any change is made, the current RERA framework continues to apply.

For investors and developers: One business commentary notes that tighter regulatory scrutiny could affect developer accountability and project execution timelines. This is commentary, not a government position. A separate, earlier FPCE request to the Consumer Affairs Secretary asked for sector-specific guidelines under the Consumer Protection Act, 2019, covering misleading advertisements and one-sided contracts. FPCE has also called for an exit clause allowing buyers to cancel with a full refund within three months of booking.

What happens next

As of 3 November 2026, no government response to the FPCE letter has been announced, and no date has been set for a decision on the proposal. The official release on RERA says the ministry may conduct a detailed exercise on next-generation RERA reforms, but it has not given a date for it.