Composition of Real Estate Regulatory Authority

Real Estate (Regulation and Development) Act, 2016, is a major reformative legislation inthe real estate sector. This legislation regulates the real estate sector and also ensuresproper enforcement of the act through various ways. The act establishes a real estateregulatory 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 toperform 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 EstateRegulatory Authority to exercise the powers conferred by the act, within 1 year from theenforcement 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 theydeem fit. Until the establishment of a Regulatory Authority under this section, the appropriateGovernment may delegate the powers of the real estate regulatory authority to any otherRegulatory Authority or to any officer. However, after the establishment of the RegulatoryAuthority under this act, all cases pending with the designated Regulatory Authority shall betransferred to the newly established authority under S.20 The Authority shall be a body corporate by the name, having perpetual succession and acommon seal, with the power, subject to the provisions of this Act. The authority shall alsohave the power to acquire, hold, and dispose of both movable and immovable property. Theauthority also has the power to enter into a contract, and the authority by the said name cansue or be sued. Besides this, the real estate regulatory authority has various other powersand functions S.21. Composition of Authority. Members of the Real Estate Regulatory Authority are generally appointed by the appropriateGovernment (typically the state government).The Real Estate Regulatory Authority consists of● a Chairperson● not less than two whole-time MembersThe chairperson will be the presiding officer, and two other whole-time members willbe there in the authority. Members of the Real Estate Regulatory Authority cannot beless 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 EstateRegulatory Authority. With the help of the Selection Committee, the appropriate governmentappoints the chairperson and members of the Real Estate Regulatory Authority. Theseappointments 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 SecretaryThe Selection Committee does these appointments in such a manner as may beprescribed, from amongst persons having adequate knowledge of and professionalexperience. c. Qualifications of Chairperson d.Qualifications of Member 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 functionsprejudicially as a Member or chairperson, then such a person should not be appointed as aMember or chairperson of the Real Estate Regulatory Authority. Before appointing anyperson as a Chairperson or Member of the Real Estate Regulatory Authority, the appropriateGovernment must comply with this condition. ReappointmentAny person who has held the post of member or chairperson in the Real Estate RegulatoryAuthority should not be eligible for re-appointment. This ensures fixed tenure andindependent 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 EstateRegulatory Authority, with terms and conditions of service of the Chairperson and otherMembers, shall be such as may be prescribed by the appropriate government. Anappropriate government can make decisions in this regard. RelinquishmentA Chairperson or a Member of the Real Estate Regulatory Authority can relinquish theiroffice by serving notice to the appropriate government. Such notice regarding therelinquishment of office should be in writing and it must be given to the appropriategovernment 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 hisoffice in accordance with the provisions of section 26.Removal of the chairperson or any other member can be done through a notified process onthe 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 publicinterest.Vacancy caused in the office of the Chairperson or any other Member by such removal shallbe 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 smoothfunctioning of the act. Some of them are regulatory, some of them are promotional, whilesome of them are growth-centric. Regulation and Development of the real estate sector isthe ultimate goal of these functions. The Real Estate Regulatory Authority generally enjoyspowers similar to those of the civil court, necessary to perform its functions. These powersare given under S.35 to