Punching holes in RERA fiddle

The apex court has issued an emergency wake-up call to India on reforming public institutions, says Charudutta Panigrahi.

- 

The Supreme Court of India's recent observations on the Real Estate Regulatory Authority (RERA) are not just about real estate - they are about governance itself.

By questioning RERA's relevance and lamenting its failure to protect homebuyers, the Court has delivered a grim reminder that institutions must justify their existence or face extinction. This is a landmark moment: the judiciary has placed accountability of public spending squarely at the centre of India's governance debate.

The Court's intervention is timely. India is on the cusp of becoming a global economic powerhouse, yet it risks being dragged down by bloated, inefficient institutions that consume resources without delivering outcomes. The RERA case is emblematic of a larger malaise: institutions that exist more to perpetuate themselves than to serve citizens.

India's middle class is the nation's fiscal backbone. In FY 2022-23, individual income tax collections surpassed corporate tax collections, meaning salaried taxpayers now contribute more than India's corporations. Just 3 per cent of salaried taxpayers contribute more in taxes than all of corporate India combined.

Yet, despite this disproportionate contribution, the middle class receives little relief. Crores are spent annually on maintaining commissions, boards, and authorities that deliver little measurable benefit. Many of these institutions function as sanctuaries for retired bureaucrats, complete with lavish offices, staff, and perks all funded by taxpayers. Retired officials already draw inflation-linked pensions, yet continue to enjoy institutional privileges. This dual burden pensions plus institutional maintenance - creates resentment among taxpayers who see little return on their contributions.

The imbalance raises a piercing question: Is the hardworking middle class funding inefficiency and privilege rather than progress?