Real Estate (Regulation and Development) Act, 2016, is a major reformative legislation in
the real estate sector. This legislation regulates the real estate sector and also ensures
proper enforcement of the act through various ways. The act establishes a real estate
regulatory authority, a separate authority having its own distinct legal identity for this act.
Well-qualified members are appointed in accordance with the provisions of the act to
perform the various functions of the authority.
Important Provisions: Real Estate Regulatory Authority under RERA Act
S.20. Establishment and incorporation of Real Estate Regulatory Authority.
S.21. Composition of Authority.
S.22. Qualifications of Chairperson and Members of Authority.
S.23. Term of office of Chairperson and Members.
S.24. Salary and allowances payable to Chairperson and Members.
S.26. Removal of Chairperson and Members from office in certain circumstances.
S.32. Functions of Authority for promotion of real estate sector.
S.34. Functions of Authority.
S.35. Powers of Authority to call for information, conduct investigations.
S.36. Power to issue interim orders.
S.37. Powers of Authority to
S.20. Establishment and incorporation of Real Estate Regulatory Authority
S. 20 directs the appropriate government to establish an authority known as the Real Estate
Regulatory Authority to exercise the powers conferred by the act, within 1 year from the
enforcement of this act. The appropriate government needs to establish such authority;
however, two or more states or union territories can establish a single authority as they
deem fit. Until the establishment of a Regulatory Authority under this section, the appropriate
Government may delegate the powers of the real estate regulatory authority to any other
Regulatory Authority or to any officer. However, after the establishment of the Regulatory
Authority under this act, all cases pending with the designated Regulatory Authority shall be
transferred to the newly established authority under S.20
The Authority shall be a body corporate by the name, having perpetual succession and a
common seal, with the power, subject to the provisions of this Act. The authority shall also
have the power to acquire, hold, and dispose of both movable and immovable property. The
authority also has the power to enter into a contract, and the authority by the said name can
sue or be sued. Besides this, the real estate regulatory authority has various other powers
and functions
S.21. Composition of Authority.
Members of the Real Estate Regulatory Authority are generally appointed by the appropriate
Government (typically the state government).
The Real Estate Regulatory Authority consists of
● a Chairperson
● not less than two whole-time Members
The chairperson will be the presiding officer, and two other whole-time members will
be there in the authority. Members of the Real Estate Regulatory Authority cannot be
less than two. Two members should be there at least.
S.22. Qualifications of Chairperson and Members of Authority.
a. Appointment of Chirperson and Members:
The appropriate government appoints the chairperson and members of the Real Estate
Regulatory Authority. With the help of the Selection Committee, the appropriate government
appoints the chairperson and members of the Real Estate Regulatory Authority. These
appointments are done according to the experience of the individual.
b. Selection Committee
The Selection Committee consists of –
● The Chief Justice of the High Court
● Nominee of the Chief Justice of the High Court
● The Secretary of the Department dealing with Housing and the Law Secretary
The Selection Committee does these appointments in such a manner as may be
prescribed, from amongst persons having adequate knowledge of and professional
experience.
c. Qualifications of Chairperson
- Professional experience of at least twenty years in urban development, housing, real
estate development, infrastructure, economics, technical experts from relevant fields,
planning, law, commerce, accountancy, industry, management, social service, public affairs,
or administration: - Held the post of Secretary to the State Government or any equivalent post in the State
Government or Central Government.
d.Qualifications of Member - Professional experience of at least fifteen years in urban development, housing, real
estate development, infrastructure, economics, technical experts from relevant fields,
planning, law, commerce, accountancy, industry, management, social service, public affairs,
or administration: - Held the post of Additional Secretary to the Central Government or any equivalent post in
the Central Government or State Government
d.Qualifications of Member
- Professional experience of at least fifteen years in urban development, housing, real
estate development, infrastructure, economics, technical experts from relevant fields,
planning, law, commerce, accountancy, industry, management, social service, public affairs,
or administration: - Held the post of Additional Secretary to the Central Government or any equivalent post in
the Central Government or State Government
S.23. Term of office of Chairperson and Members
Tenure of Chairperson and Members
● Five years (from the date on which they enter upon their office) OR
● Sixty-five years of age, whichever is earlier.
If any person has any kind of financial or other interest that is likely to affect their functions
prejudicially as a Member or chairperson, then such a person should not be appointed as a
Member or chairperson of the Real Estate Regulatory Authority. Before appointing any
person as a Chairperson or Member of the Real Estate Regulatory Authority, the appropriate
Government must comply with this condition.
Reappointment
Any person who has held the post of member or chairperson in the Real Estate Regulatory
Authority should not be eligible for re-appointment. This ensures fixed tenure and
independent functioning while preventing misuse of power and political influence.
S.24. Salary and allowances payable to Chairperson and Members.
Salary and allowances payable to the Chairperson and other Members of the Real Estate
Regulatory Authority, with terms and conditions of service of the Chairperson and other
Members, shall be such as may be prescribed by the appropriate government. An
appropriate government can make decisions in this regard.
Relinquishment
A Chairperson or a Member of the Real Estate Regulatory Authority can relinquish their
office by serving notice to the appropriate government. Such notice regarding the
relinquishment of office should be in writing and it must be given to the appropriate
government before not less than three months.
S.26. Removal of Chairperson and Members from office in certain circumstances.
Chairperson or a Member of the Real Estate Regulatory Authority can be removed from his
office in accordance with the provisions of section 26.
Removal of the chairperson or any other member can be done through a notified process on
the following grounds
If the Chairperson or such other Member –
(a) has been adjudged as an insolvent
(b) has been convicted of an offence involving moral turpitude
(c) has become physically or mentally incapable of acting as a Member
(d) has acquired such financial or other interest as is likely to affect his functions prejudicially
(e) has so abused his position as to render his continuance in office prejudicial to the public
interest.
Vacancy caused in the office of the Chairperson or any other Member by such removal shall
be filled within a period of three months from the date on which such vacancy occurs.
Powers and Functions of the Real Estate Regulatory Authority
S.32 and 34 list various functions that a real estate authority needs to perform for the smooth
functioning of the act. Some of them are regulatory, some of them are promotional, while
some of them are growth-centric. Regulation and Development of the real estate sector is
the ultimate goal of these functions. The Real Estate Regulatory Authority generally enjoys
powers similar to those of the civil court, necessary to perform its functions. These powers
are given under S.35 to 39.
Conclusion
The Real Estate (Regulation and Development) Act, 2016, is an important legislation in the
field of real estate. While regulating the real estate sector, this act also ensures proper
enforcement. For this purpose, various authorities are established under the act. Real Estate
Regulatory Authority is one of them. S. 20 to 26 provides us with the provisions related to the
establishment, composition, and appointment of members of the Real Estate Regulatory
Authority.
