Homebuyers' body asks PM Modi to split RERA into a separate buyer-protection law

The homebuyers' body Forum for People's Collective Efforts (FPCE) has written to Prime Minister Narendra Modi, asking for a fundamental restructuring of the Real Estate (Regulation and Development) Act, 2016, commonly called RERA. The letter is dated 2 November 2026 and was issued from New Delhi. FPCE President Abhay Upadhyay is the spokesperson for the argument.

Why FPCE wants the law split

FPCE's central argument is that one authority is expected to both promote real estate development and protect homebuyers. The group says this conflict has weakened how the law is implemented. It wants the law to focus on homebuyer protection, transparency, promoter accountability, prevention of malpractices and effective grievance redressal.

The proposal has three main parts:

• Remove the promotion and development role from the law that governs buyer protection.
• Keep sector promotion with the Ministry of Housing and Urban Affairs and relevant development agencies.
• Place homebuyer protection under a separate law, to be named the Real Estate Homebuyer Protection Act, and administered by the Department of Consumer Affairs.

FPCE also wants stronger accountability for regulatory authorities, so that repeated failures to enforce the law or implement orders are scrutinised. Among the practices it lists are one-sided agreements, project delays, diversion of funds, mechanical project registrations, repeated extensions of completion timelines and non-execution of orders already passed by regulators.

The figures FPCE cites

FPCE's own 192-page report estimates that about ₹12.44 lakh crore of homebuyers' money is trapped in delayed projects, affecting nearly 27.6 lakh families. The report covers records from RERA authorities in seven states. These are FPCE's estimates, not official findings.

FPCE said the current system has failed to fully resolve delayed projects and blocked homebuyer funds. It has also asked the Consumer Affairs ministry earlier for sector-specific guidelines under the Consumer Protection Act, 2019, covering misleading advertisements and one-sided contracts. In a separate earlier request, it sought an exit clause allowing buyers to cancel a booking with a full refund within three months.

What it means for buyers and developers

For now, the letter changes nothing in the law. RERA remains in force as it is, and buyers continue to use the existing complaint and order process in their state. Land and colonisation are State subjects under Entry 18 of the State List in the Constitution. A government release dated 30 July 2026 notes this. Any central change to RERA would therefore have to work alongside state RERA authorities, which enforce most of the Act on the ground.

The same government release says the ministry has held regular consultations over the past year with homebuyers' associations, developers and state regulators. These talks covered effective implementation, standard operating procedures and amendments needed in the Act. An internal ministry deliberation on strengthening the RERA framework on 27 October 2026 was also cited by FPCE.

Developers may face closer scrutiny if the regulators' enforcement role is strengthened, though no change has been proposed in a formal draft.

What happens next

No government response to the FPCE letter has been reported, and no date for a decision has been announced. The Central Advisory Council has recommended next-generation RERA reforms, and the ministry may carry out a detailed exercise on the necessary measures. No date has been given for that exercise. Buyers and developers should watch for a draft amendment or a consultation paper from the ministry, which would be the first formal sign that the proposal is being considered.