Supreme Court dubs RERA a ‘rehab center’ for retired IAS, calls for its abolition

The Supreme Court has reacted sharply to the functioning of the Real Estate Regulatory Authority (RERA), saying it is doing nothing except protecting defaulting builders and acting as a rehabilitation centre for retired bureaucrats. The court even said it would not mind if such an institution were abolished.

This sharp criticism came from a bench comprising Chief Justice of India Surya Kant (CJI) and Justice Joymalya Bagchi while hearing a case challenging the Himachal Pradesh government’s decision to shift the state RERA office from Shimla to Dharamshala.

The bench stated that the people whose interests RERA was supposed to protect are today disappointed, frustrated, and angry.

The CJI made a caustic remark about the existence of RERA, saying in every state, this institution has become a rehabilitation center for retired IAS officers while the common people are not getting any effective relief.

The case relates to a Himachal Pradesh High Court order that had stayed the June 2025 govt’s notification transferring the RERA office from Shimla to Dharamshala.

The High Court, on December 30, 2025, directed the continuation of its interim order. The Supreme Court has stayed this order and allowed the state government to relocate the RERA office to a location of its choice, although the final decision will depend on the outcome of a petition pending in the High Court.

The state govt contended that this step was taken as part of its development policy for Palampur, Dharamshala, and other cities.

During the hearing, CJI Surya Kant also questioned the rationale for appointing retired bureaucrats to RERA. The Supreme Court directed that if the office is transferred to Dharamshala, the appellate powers may also be transferred to the Principal District Judge in Dharamshala so that affected parties are not inconvenienced by having to travel to Shimla.

This is not an isolated case in which the apex court overruled the High Court order. In a separate case on February 9, the apex court lifted the High Court’s stay on the state govt’s decision to transfer the OBC Commission from Shimla to Dharamshala. The apex court ruled that such decisions fall within the scope of policy matters and are generally not amenable to judicial intervention.