Fix the Locks, Don’t Scrap the Law: A
Developer’s Case for RERA 2.0
- Anil Pharande, Chairman - Pharande Spaces
The recent news stories about the Real Estate Regulation Act
(RERA) have been nothing short of extraordinary. People understandably get
anxious when the Supreme Court says that a regulator has turned into a
'rehabilitation center' for retiring officials - or that we may as well get rid
of it. But as a developer who has worked in this field for decades, both before
and after 2016, I see this uproar not as a sign of failure but as a crucial
turning point.
Let's be clear - we can't go back to the 'dark ages.' To those
who want RERA to be thrown out, I ask: Have we really forgotten the time when
deposits disappeared, projects were put on hold for twenty years, and no one
was held accountable? RERA is not a problem for serious, professional
developers; it is the infrastructure that finally gave our industry
respectability.
The 'Last Mile' - The Real Issue
The judges' remarks are all about one thing, and that is
enforcement. When a homebuyer obtains a refund order, the 'last mile' - getting
the money back - often gets trapped in the slow gears of local revenue
departments. This is a fair criticism of how this legislation is carried out,
not the law itself.
The 'paper tiger' story makes for excellent headlines, but it
ignores the structural shield that works every day. The 70% escrow rule, which
says that most of a buyer's money must stay in a project-specific account, has
put an end to the risky practice of robbing Peter to pay Paul, so to speak. The
financial safety net for homebuyers became stronger than ever in 2025 when
required quarterly audits by third parties were put in place.
This means that the money you pay for your house is going toward
building it. And that is purely thanks to RERA
How RERA Transformed Pune and PCMC
The Pune and Pimpri-Chinchwad Municipal Corporation (PCMC)
corridor is one where RERA has been most successful. In 2025, Pune had the most
active real estate market in Maharashtra, with 1,144 new projects - more than
Thane and suburban Mumbai combined.
Frankly, the change in PCMC has been amazing. Ravet, Moshi, and
Punawale have become high-demand hubs instead of outlying zones, thanks to the
fact that RERA encourages strong developers with full execution capabilities
and weeds out fly-by-night builders who leave their projects incomplete or only
on paper. Serious homebuyers, like Pune's IT professionals and various
industrial professionals, expect transparency and reliability.
In PCMC, property values went up by 10% in early 2025, which was
faster than even central Pune. This is because investors and end-users are
zeroing in on integrated townships and
other gated communities by reputed developers in the PCMC corridor. But this
did not just happen by chance. MahaRERA has been a true godsend in these
markets.
When you buy a home in a high-demand area like Hinjewadi,
Punawale or Moshi today, you are buying on the basis of a legally binding
guarantee that you can see on a public dashboard which shows you how projects
are progressing in real time. Thanks to MahaRERA.
Taking Out the Gamblers
One of RERA's best accomplishments has been to do a thorough
house-cleaning on who can and cannot build, what they can build, and by when
they have to complete it. Yes, some builders play with the loopholes in RERA,
but strong, branded players actually abide by its rules and regulations.
So much so that the two main pieces of advice given to a homebuyer
today are - buy from a strong developer with a proven track record (which can
be checked on the RERA portal) and make sure that the project is
RERA-registered. The real estate market used to be a landscape where
fly-by-night operators could play at will. Anyone with a piece of land and a
brochure but no money or commitment power could launch a project. RERA has done
an exemplary job of sweeping these 'gamblers' out of the market.
The cost of compliance, which includes five-year structural
warranties and comprehensive quarterly reports, has favoured strong hands -
developers with enough cash and proven records. Thanks to RERA, we are seeing a
huge consolidation, and the end result is that homebuyers can now deal with
thoroughbred professional builders who have a lot to lose if they do not do a
good job.
Quality is Now the Default Option
Before 2016, builders could say and advertise whatever they
wanted about the scope and quality of their projects. RERA's five-year defect
liability clause has forced developers to stop using cheap promotional
practices to entice buyers. They invest in better building technologies because
they know that if a project develops faults and flaws even four years after you
move in, they have to pay to fix it.
Today, every real estate advertisement must have a QR code on
it. A simple scan gives a buyer the land titles for the project, the
permissions, and even images of construction progress on the ground. Ten years
ago, this level of openness would have been unthinkable. RERA has changed the
balance of power from the developer to the customer.
Yes, We DO Need RERA with Teeth
So, are there issues? Absolutely, but the answer is not to get
rid of RERA - it is to give it more power. We need to work on RERA 2.0 - a
version that has its own separate enforcement wings instead of depending on
overworked district collectors to carry out recovery warrants. We need a system
where the regulator can do more than simply make a decision.
My message to homebuyers in Pune and PCMC is simple - you are
safer now than you have ever been. The current uproar shows that people are
looking closely at the system, which is a good thing. It suggests that the
courts want even higher standards, and that is totally justified.
RERA has made project finances more organised, raised the
requirements for construction, and gotten rid of the rogue actors that gave
this business a poor name. RERA empowers developers who intend to stay in the
industry for the long-term, and fully intend to run their business in a responsible,
regulated, and serious manner.
No doubt, the house needs further cleaning - but we don't need
to set it on fire just because we need to fix the front door locks. We need to
enforce the rules more, not less. That's the only way to make 'Viksit Bharat'
happen.
About the author:
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Anil Pharande is Chairman of Pharande Spaces, a leading real estate
construction and development firm famous for its township projects in
Greater Pune and beyond. Pharande Promoters & Builders, the flagship
company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer
of townships in the region.
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