NEW DELHI: The Supreme Court on Thursday said it is time for all states to reconsider the constitution of the Real Estate Regulatory Authority (Rera) as the agency has done nothing but “facilitate” defaulting builders.Chief Justice Surya Kant and Justice Joymalya Bagchi said those creating Rera were “completely disappointed”. “It would be better to abolish this institution, we don’t mind,” the CJI said. These observations came as the bench allowed the Himachal Pradesh government to shift Leila’s office to a location of its choice.
Better to scrap it: Bench at HP office relocation hearing
“…it is time for all states to revisit and reconsider and even establish this agency,” the bench said.When the bench was informed that Raila had appointed a retired IAS officer, the CJI said, “In every state, this has become a rehabilitation center. These authorities are occupied by these people.” The Attorney General of Himachal Pradesh told the bench that the state is developing Palampur, Dharamshala and other cities based on a policy decision. “What is the logic of having a retired bureaucrat? How will he help develop Palampur? You need to avail the services of some architects who are environment-friendly and know Palampur, Dharamshala and these areas. Only these people will help,” the CJI asked. The bench issued notice on a plea filed by the Himachal Pradesh government and others challenging the High Court’s decision to shift the state’s Leila office from Shimla to Dharamshala. The HC had earlier stayed the June 2025 notification regarding relocation of Rera’s office until further orders. Subsequently, the court in its order dated December 30, 2025, directed that the interim order be continued. The Supreme Court upheld the HC’s December 30 decision.In a plea filed in the Supreme Court through lawyer Sugandha Anand, the state said the decision to shift the office was to “decongest” Shimla and was purely due to administrative considerations. A lawyer appearing for the accused said that 90 per cent of the agency’s projects are located in Shimla, Solan, Parvanu and Sirmaur, with a maximum radius of 40 km. He said about 92% of the complaints pending with Rera were from these areas; there were only 20 projects in Dharamshala.“They are completely frustrated, disgusted and disillusioned by who this institution was created for. Not one of them has received any meaningful relief. Who this institution is actually for now, you will know when you meet these people,” the judge said.The top court also observed that Shimla was “completely exhausted”. “The state can shift the office of Raila to a location of its choice. However, this shall depend on the final outcome of the writ petition pending before the High Court,” the bench said while issuing the counter notice.The bench was also informed that the appeal against the order passed by Leila is pending before the Shimla district magistrate. The bench said that to ensure that people affected by the Leila order do not face any inconvenience in traveling to Shimla to lodge appeals, the right of appeal may be transferred to the chief district magistrate in Dharamshala.
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