Introduction to Powers and Functions of Real Estate Regulatory Authority
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. The act also designated various powers and functions to the authority for the smooth functioning.
Important Provisions
- S.20. Establishment and incorporation of Real Estate Regulatory Authority.
- 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 issue directions.
- S.38. Powers of Authority.
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 can designate the powers of the real estate regulatory authority to any other Regulatory Authority or 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.
Functions of Authority. (S.32 & 34)
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 functions of the real estate regulatory authority are as follows,
Functions for promotion of real estate sector :
● protection of the interests of the allottees, promoter, and real estate agent
● streamline the regulatory procedure, ensuring time-bound project approvals and clearances for the timely completion of the project
● creation of a transparent and robust grievance redressal mechanism
● encourage investment in the real estate sector
● encourage the construction of environmentally sustainable and affordable housing
● encourage grading of projects on various parameters of development
● facilitate amicable conciliation of disputes
● facilitate the digitisation of land records and systems towards conclusive property titles
● render advice to the appropriate Government in matters relating to the development of the real estate sector
● Perform any other issue that the Authority may think necessary for the promotion of the real estate sector.
Regulatory functions of the authority :
● to register and regulate real estate projects and real estate agents
● to publish and maintain a website of records, a database and other important documents for public viewing,
● Publish the list of promoters as defaulters, including the necessary details for access to the general public
● to ensure compliance with the obligations cast upon the promoters, the allottees and the real estate agents
● to ensure compliance with regulations or orders, or directions made in exercise of its powers to perform such other functions as may be entrusted to the Authority by the appropriate Government, as may be necessary to carry out the provisions of this Act.
Powers of the Real Estate Regulatory Authority
The Real Estate Regulatory Authority generally enjoys powers similar to those of the civil court, necessary to perform its functions. These powers include:
● Power to call for information
If the authority thinks it is necessary to obtain information while dealing with any matter or dispute under this act, then the real estate regulatory authority can call for information. Authority can ask the promoter, real estate agent, allottee or any such person for the information by order in writing and with the reasons recorded.
● Power to investigate and adjudicate
Authority has the power to investigate a matter upon a complaint received by the complainant, suo motu order or on the suggestion of the appropriate government. For investigation, the authority can also call for evidence and examine the same. After investigation, the authority can adjudicate the matter on the merits. These are some of the important powers given to the authority concerning dispute resolution.
● Power to issue summons
For investigation and proper adjudication of the matter, the authority is also entrusted with the power to issue a summons. The real estate regulatory authority can issue a summons for presence or for any other reason.
● Power to issue interim orders
Sometimes it becomes necessary to provide interim relief to the parties to protect their interests or for any other necessary reason under the act. Hence, the real estate regulatory authority is empowered with power to issue interim orders during the adjudication of the matter.
● Power to issue directions
To ensure proper regulation and effective implementation of the act, the authority can issue necessary directions. These directions are necessary for the smooth, hassle-free functioning of the act. However, this power is not absolute, and authority cannot issue arbitrary and unreasonable directions.
● Power to impose a penalty
Various offences and penalties for these offences are covered under the act; these provisions are necessary for proper enforcement. The real estate regulatory authority has the power to impose a penalty for violations of the provisions of the act.
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, which performs various functions and is entrusted with various important powers from S.32 to 38
