S.1 Short title, extent and commencement

       (1) This Act may be called the Real Estate (Regulation and Development) Act, 2016.
       (2) It extends to the whole of India except the State of Jammu and Kashmir.
       (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:
       Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

S.2 Definitions

       In this Act, unless the context otherwise requires,-
       (a) "adjudicating officer" means the adjudicating officer appointed under sub-section (1) of section 71;
       (b) "advertisement" means any document described or issued as advertisement through any medium and includes any notice, circular or other documents or publicity in any form, informing persons about a real estate project, or offering for sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, building or apartment or to make advances or deposits for such purposes;
       (c) "agreement for sale" means an agreement entered into between the promoter and the allottee;
       (d) "allottee" in relation to a real estate project, means the person to whom a plot, apartment or b

S.3 Prior registration of real estate project with Real Estate Regulatory Authority

       (1) No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act:
       Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act:
       Provided further that if the Authority thinks necessary, in the interest of allottees, for projects which are developed beyond the planning area but with the requisite permission of the local a

Legal Commentary on Section 3 of the Real Estate Regulation and Development Act, 2016

Introduction

Section 3 of the RERA Act, 2016, is the cornerstone provision that mandates the registration of real estate projects with the respective State RERA authority before any advertisement, sale, or booking takes place. It aims to regulate the unorganized real estate sector, promote transparency, and protect the interests of consumers and stakeholders.

What does Section 3 Say?

• Mandatory Registration: No promoter shall advertise, market, book, sell, or invite persons to purchase any real estate project or part of it without prior registration with the designated RERA authority (Section 3(1)).
• Applicability to Ongoing Projects: Projects that are ongoing on the date of commencement of the Act and for which no completion certificate has been issued must register within three months of the Act's commencement (Proviso 1 to Section 3(1)).
• Exemptions: Projects below certain thresholds (e.g., land area less than 500 sq.m or fewer than 8 units), completed projects before the Act, and projects involving only renovation or repair without marketing or new allotment are exempted from registration (Section 3(2)).
• Phased Development: Each phase of a project is considered a standalone project requiring separate registration (Explanation to Section 3).

Essential Ingredients

• Definition of 'Real Estate Project': Encompasses development of land, buildings, apartments, or converting existing structures into apartments, including common areas and easements (Section 2(zn)).
• Timing: The registration must occur before any advertisement, marketing, or sale activity.
• Thresholds: Projects exceeding 500 sq.m or more than 8 units must register; smaller projects are exempted unless specified.
• Phases: Each phase is a separate project requiring individual registration.
• Ongoing Projects: Projects initiated before the Act but not completed require registration within three months of the Act's commencement.

Scope of Section 3

• Regulatory Control: Ensures all significant real estate projects are registered, bringing transparency and accountability.
• Consumer Protection: Facilitates enforcement against unregistered projects, safeguarding buyer interests.
• Development Regulation: Prevents illegal marketing and sale activities without proper approval.
• Jurisdictional Clarity: Clarifies that only registered projects can be marketed or sold, excluding unregistered projects from the market.
• Phased Projects: Mandates registration for each phase, preventing piecemeal development to evade regulation.
• Exemptions and Thresholds: Recognizes small or completed projects as exempted, balancing regulation with practicality.

Punishment for Non-Compliance

• Penalties: Contravention of Section 3 can attract a penalty up to 10% of the estimated cost of the project (Section 59; ).
• Imprisonment: In certain cases, criminal liability may extend to imprisonment, especially for repeated or fraudulent violations ().
• Legal Action: Unregistered projects cannot be marketed or sold legally; promoters may face civil and criminal proceedings for violations.

Legal Comments (Bullet Point Summary)

• Mandatory Registration - Section 3 imposes an obligation on promoters to register projects before marketing or sale activities commence - [01500056094].
• Ongoing Projects - Projects initiated prior to the Act's enforcement require registration within three months of commencement to avoid penalties - [01500056094].
• Thresholds and Exemptions - Projects below 500 sq.m or with fewer than 8 units are exempted unless notified otherwise by the government - [01500056094].
• Phased Development - Each phase of a multi-phase project is treated as a separate project needing individual registration - [01500056094].
• Threshold for Applicability - Projects exceeding 500 sq.m or 8 units must register; smaller projects are exempted unless specified - [01500056094].
• Registration Before Sale - No sale, advertisement, or marketing can be undertaken without prior registration, ensuring transparency - .
• Penalty for Violation - Contravention can lead to penalties up to 10% of the estimated project cost, emphasizing deterrence - .
• Exception for Completed Projects - Projects with valid completion certificates before the Act are exempted from registration obligations - [01500056094].
• Phased Projects - Each phase is a standalone project, requiring separate registration, preventing evasion of regulation - [01500056094].
• Threshold and Exemptions - Projects below thresholds (area or units) may be exempted, but this is subject to government notification - [01500056094].
• Jurisdictional Clarity - The authority's jurisdiction is limited to registered projects; unregistered projects are barred from sale or advertisement - [01500056094].
• Suo Moto Power - The authority can initiate suo moto proceedings if it identifies unregistered projects, reinforcing regulatory oversight - [Shwas Homes Private Limited VS Moon Waters Owners Association].
• Penalties and Enforcement - Violations attract penalties and possible imprisonment, reinforcing compliance - .
• Legal Consequences - Non-registration leads to civil and criminal liabilities, including fines and imprisonment for promoters - .
• Consumer Rights - Registration facilitates buyer protection and enforcement of rights under the Act - [01500056094].
• Threshold for Regulation - Projects below specified thresholds are exempted, balancing regulation with practical considerations - [01500056094].
• Phased Development - Each phase requires separate registration, preventing developers from splitting projects to evade regulation - [01500056094].

Conclusion

Section 3 of the RERA Act, 2016, is a comprehensive provision that mandates the registration of all significant real estate projects before they are marketed or sold. It balances regulatory oversight with exemptions for small or completed projects, aiming to create transparency, accountability, and consumer protection in the real estate sector. Strict penalties, including fines and imprisonment, underscore the importance of compliance. Judicial interpretations reinforce that registration is a precondition for lawful marketing and sale, and violations attract severe consequences, ensuring the integrity of the real estate market.

Note: All references are based on the provided sources, emphasizing the legal interpretations and judicial pronouncements related to Section 3 of the RERA Act, 2016.

S.4 Application for registration of real estate projects

       (1) Every promoter shall make an application to the Authority for registration of the real estate project in such form, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority.
       (2) The promoter shall enclose the following documents along with the application referred to in sub-section (1), namely:-
       (a) a brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, societies, partnership, companies, competent authority), and the particulars of registration, and the names and photographs of the promoter;
       (b) a brief detail of the projects launched by him, in the past five years, whether already completed or being developed, as the case may be, including the current status of the said projects

S.5 Grant of registration.

       (1) On receipt of the application under sub-section (1) of section 4, the Authority shall within a period of thirty days.
       (a) grant registration subject to the provisions of this Act and the rules and regulations made thereunder, and provide a registration number, including a Login Id and password to the applicant for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project; or
       (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of this Act or the rules or regulations made thereunder:
       Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.
       (2) If

S.6 Extension of registration.

       The registration granted under section 5 may be extended by the Authority on an application made by the promoter due to force majeure, in such form and on payment of such fee as may be specified by regulations made by the Authority:
       Provided that the Authority may in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one year:
       Provided further that no application for extension of registration shall be rejected unless the applicant has been given an opportunity of being heard in the matter.
       Explanation.- For the purpose of this section, the expression "force majeure"

S.7 Revocation of registration.

       (1) The Authority may, on receipt of a complaint or suo motu in this behalf or on the recommendation of the competent authority, revoke the registration granted under section 5, after being satisfied that-
       (a) the promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder;
       (b) the promoter violates any of the terms or conditions of the approval given by the competent authority;
       (c) the promoter is involved in any kind of unfair practice or irregularities.
       Explanation.-For the purposes of this clause, the term "unfair practice means" a practice which, for the purpose of promoting the sale or development of any real estate project adopts any unfair method or unfair or deceptive practice inclu

S.8 Obligation of Authority consequent upon lapse of or on revocation of registration.

       Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority:
       Provided that no direction, decision or order of the Authority under this section shall. take effect until the expiry of the period of appeal provided under the provisions of this Act:
       Provided further that in case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works.

Legal Commentary on Section 8 of the Real Estate Regulation and Development Act, 2016

Introduction

The Real Estate Regulation and Development Act, 2016 (RERA) was enacted to promote transparency, accountability, and efficiency in the real estate sector in India. Section 8 specifically addresses the obligations of the Real Estate Regulatory Authority (RERA) in the event of the lapse or revocation of registration of a real estate project.

What Does Section 8 Say

Section 8 outlines the responsibilities of the authority when a registration lapses or is revoked. It mandates that the authority must take necessary actions to protect the interests of allottees and ensure that the project is completed or the interests of the buyers are safeguarded.

Essential Ingredients

• Lapse of Registration: The section specifies conditions under which the registration of a project may lapse.
• Revocation of Registration: It details the circumstances that may lead to the revocation of a project’s registration.
• Obligations of Authority: The authority is required to take steps to protect the interests of consumers in such scenarios.

Scope of Section

The scope of Section 8 is broad, covering various scenarios where a project’s registration may be compromised. It aims to ensure that the rights of consumers are upheld even when a project faces regulatory challenges.

Punishment for Section

While Section 8 itself does not prescribe specific punishments, violations related to the obligations outlined may lead to penalties as specified in other sections of the Act, such as Section 66, which deals with non-compliance with orders of the authority.

Legal Comments

• Consumer Protection - Section 8 is crucial for protecting consumer interests in real estate projects, ensuring that buyers are not left in a lurch if a project’s registration lapses or is revoked. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Authority's Role - The authority must act promptly to mitigate any adverse effects on consumers when a project registration is revoked. [ "Real Estate (Regulation and Development) Act, 2016 - India Code"]
• Regulatory Framework - The section reinforces the regulatory framework established by RERA, which aims to minimize malpractices in the real estate sector. [ "Real Estate (Regulation and Development) Act, 2016 - Wikipedia"]
• Adjudication Mechanism - It establishes an adjudication mechanism for resolving disputes arising from the lapse or revocation of registration. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Mandatory Compliance - Promoters are mandated to comply with the provisions of RERA, failing which they may face penalties. [ "Penalties under RERA - IndiaFilings"]
• Consumer Rights - The Act aims to ensure that consumers have a right to seek redressal through the established authority, enhancing their protection. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Transparency - Section 8 contributes to the overall transparency of the real estate sector by ensuring that consumers are informed about the status of their projects. [ "Real Estate (Regulation and Development) Act, 2016 - Wikipedia"]
• Interim Measures - The authority may take interim measures to protect consumer interests pending the resolution of issues related to registration. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Legal Recourse - Consumers have the right to approach the authority for redressal if their interests are compromised due to the lapse or revocation of registration. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Impact on Developers - Developers must be aware of the implications of registration lapses, as it can significantly affect their operations and reputation. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Regulatory Authority's Function - The authority is tasked with ensuring that projects are completed in accordance with the law, thereby safeguarding consumer investments. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Consumer Awareness - The Act encourages consumer awareness regarding their rights and the obligations of developers under RERA. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Penalties for Non-Compliance - Non-compliance with the obligations under Section 8 may lead to penalties as outlined in other sections of the Act. [ "Penalties under RERA - IndiaFilings"]
• Legal Framework - Section 8 is part of a comprehensive legal framework aimed at regulating the real estate sector effectively. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Consumer Trust - By ensuring that the authority acts in the interest of consumers, Section 8 helps build trust in the real estate market. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]
• Future Implications - The provisions of Section 8 may have long-term implications for how real estate projects are managed and regulated in India. [ "Real Estate (Regulation and Development) Act, 2016 - iPleaders"]

S.9 Registration of real estate agents.

       (1) No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under section 3, being sold by the promoter in any planning area, without obtaining registration under this section.
       (2) Every real estate agent shall make an application to the Authority for registration in such form, manner, within such time and accompanied by such fee and documents as may be prescribed.
       (3) The Authority shall, within such period, in such manner and upon satisfying itself of the fulfillment of such conditions, as may be prescribed-
       (a) grant a single registration to the real estate agent for the en

S.10 Functions of real estate agents.

       Every real estate agent registered under section 9 shall-
       (a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being sold by the promoter in any planning area, which is not registered with the Authority;
       (b) maintain and preserve such books of account, records and documents as may prescribed;
       (c) not involve himself in any unfair trade practices, namely:-
       (i) the practice of making any statement, whether orally or in writing or by visible representation which-
       (A) falsely represents that the services are of a particular standard or grade;
       (B) represents that the promoter or himse

S.11 Functions and duties of promoter.

       (1) The promoter shall, upon receiving his Login Id and password under clause (a) of sub-section (1) or under sub-section (2) of section 5, as the case may be, create his web page on the website of the Authority and enter all details of the proposed project as provided under sub-section (2) of section 4, in all the fields as provided, for public viewing, including-
       (a) details of the registration granted by the Authority;
       (b) quarterly up-to-date the list of number and types of apartments or plots, as the case may be, booked;
       (c) quarterly up-to-date the list of number of garages booked;
       (d) quarterly up-to-date the list of approvals taken and the approvals which are pending subsequent to commencement certificate;
     &n

S.12 Obligations of promoter regarding veracity of the advertisement or prospectus.

       Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under this Act:
       Provided that if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or the model apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under this Act.

Legal Commentary on Section 12 of the Real Estate Regulation and Development Act, 2016

Introduction

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to regulate the real estate sector, ensuring transparency, accountability, and consumer protection. Section 12 of the Act imposes specific obligations on promoters regarding the veracity of advertisements or prospectuses, holding them accountable for any false or misleading information provided to prospective buyers.

What Section 12 Says

Section 12 of the Real Estate (Regulation and Development) Act, 2016 deals with the "Obligations of promoter regarding veracity of the advertisement or prospectus." Where any person makes an advance or a deposit on the basis of the information contained in the notice, advertisement, or prospectus, or on the basis of any other information provided, the promoter shall be liable to compensate the person for any loss or damage suffered by him due to any incorrect, false, or misleading information contained therein.

Essential Ingredients

1. Advertisement/Prospectus Publication - The promoter must have issued or published any advertisement, notice, or prospectus
2. Reliance by Allottee - The person must have made an advance or deposit based on the information contained in such advertisement
3. False/Misleading Information - The information provided must be incorrect, false, or misleading
4. Loss or Damage - The allottee must have suffered actual loss or damage
5. Causal Connection - The loss must be attributable to the false/misleading information

Scope of Section

Section 12 establishes that the promoter cannot advertise, market, book, sell or offer for sale any plot, apartment, or building without truthful representations. It covers all forms of promotional material including notices, advertisements, and prospectuses. The section ensures symmetry of information between the promoter and purchaser and sets minimum standards of accountability.

Punishment for Section

The Act provides for compensation to the allottee for any loss or damage suffered due to incorrect or misleading information. Additionally, under the penal provisions of the Act (Sections 59-68), failure to comply with the orders of the Authority may result in penalties including imprisonment and fines as specified under the applicable provisions.

Legal Comments

• Liability for Misrepresentation - Promoters are strictly liable to compensate allottees for any loss suffered due to false or misleading information in advertisements, notices, or prospectuses. [Section 12, RERA 2016]

• Binding Effect on Promoter - Section 12 imposes a statutory obligation on promoters regarding the veracity of all promotional materials, making them accountable for any incorrect claims. [Section 12, RERA 2016]

• Beneficial Legislation - RERA is a beneficial legislation intended to safeguard the interest of consumers as well as promoters by imposing certain responsibilities on both. [Para 39, Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. - 2022 0 Supreme(Ker) 400]

• Consumer Protection Objective - The Act ensures greater accountability towards customers and consumers and reduces frauds and delays in the real estate sector. [Para 39, Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. - 2022 0 Supreme(Ker) 400]

• Symmetry of Information - Section 12 seeks to establish symmetry of information between the promoter and purchaser and transparency of contractual conditions. [Para 39, Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. - 2022 0 Supreme(Ker) 400]

• Accountability Standards - The provision sets minimum standards of accountability and provides a fast-track dispute resolution mechanism for aggrieved allottees. [Para 39, Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. - 2022 0 Supreme(Ker) 400]

• Compensatory Remedy - The remedy under Section 12 is compensatory in nature, requiring the promoter to make good any loss suffered by the allottee due to misleading information. [Section 12, RERA 2016]

• Pre-contractual Stage Protection - Section 12 protects allottees at the pre-contractual stage when they make advances or deposits based on promotional materials. [Section 12, RERA 2016]

• Adjudicating Officer's Jurisdiction - The Adjudicating Officer has specific jurisdiction under the Act and exceeding that jurisdiction may render orders invalid. [Hiren Sureshbhai Patel VS State Of Gujarat - 2023 0 Supreme(Guj) 371]

• Limited Scope of Adjudication - The role of the Adjudicating Officer under RERA is circumscribed by the Act and cannot extend beyond the powers vested. [Hiren Sureshbhai Patel VS State Of Gujarat - 2023 0 Supreme(Guj) 371]

• Form A Complaint - Complaints under Section 12 read with Rule 11 must be filed in Form-A before the designated authority for proper adjudication. [Hiren Sureshbhai Patel VS State Of Gujarat - 2023 0 Supreme(Guj) 371]

• Contractual Compliance - Where an allottee has not complied with contractual obligations (e.g., non-payment of agreed amounts), the promoter's liability under Section 12 may be affected. [Hiren Sureshbhai Patel VS State Of Gujarat - 2023 0 Supreme(Guj) 371]

• Purpose of the Act - RERA was established for regulation and promotion of the real estate sector and to ensure sale of plot, apartment, building, etc., in an efficient and transparent manner. [Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. - 2022 0 Supreme(Ker) 400]

• Redressal of Grievances - If RERA cannot redress the grievances of consumers like the appellant, the very purpose of the Act would become otiose. [Para 39, Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. - 2022 0 Supreme(Ker) 400]

• Statutory Obligation - Section 12 creates a statutory obligation distinct from contractual obligations, providing an independent remedy to allottees. [Section 12, RERA 2016]

• Transparency Mandate - The provision mandates transparency in property transactions by requiring developers to truthfully disclose project details, approvals, and timelines. [RERA 2016]

• Fast-track Resolution - The Act provides for a fast-track dispute resolution mechanism through the Real Estate Regulatory Authority. [Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. - 2022 0 Supreme(Ker) 400]

• Retroactive Application - Section 12 of RERA applies to obligations of the promoter regarding information given and representations made in advertisements. [Retroactive Application Jurisprudence]

• Defect Rectification - The promoter has to rectify any defects or issues faced by the buyer within 5 years of purchase as per the quality of construction promised. [RERA 2016]

• Regulatory Oversight - The Real Estate Regulatory Authority (RERA) in each state is responsible for regulation of the real estate sector and acts as an adjudicating body. [RERA 2016]

S.13 No deposit or advance to be taken by promoter without first entering into agreement for sale.

       (1) A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.
       (2) The agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed and shall specify the particulars of development of the project including the construction of building and apartments, along with specifications and internal development works and external development works, the dates and the manner by which payments towards the cost of the apartment, plot or building, as the case may be, are to be made by the allottees and the date on which the possession of the apartment, plot or building is to be handed ov

S.14 Adherence to sanctioned plans and project specifications by the promoter.

       (1) The proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities.
       (2) Notwithstanding anything contained in any law, contract or agreement, after the sanctioned plans, layout plans and specifications and the nature of the fixtures, fittings, amenities and common areas, of the apartment, plot or building, as the case may be, as approved by the competent authority, are disclosed or furnished to the person who agree to take one or more of the said apartment, plot or building, as the case may be, the promoter shall not make-
       (i) any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities described therein in respect of the apartment, plot or bu

S.15 Obligations of promoter in case of transfer of a real estate project to at hird party.

       (1) The promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, except the promoter, and without the prior written approval of the Authority:
       Provided that such transfer or assignment shall not affect the allotment or sale of the apartments, plots or buildings as the case may be, in the real estate project made by the erstwhile promoter.
       Explanation.-For the purpose of this sub-section, the allottee, irrespective of the number of apartments or plots, as the case may be, booked by him or booked in the name of his family, or in the case of other persons such as companies or firms or any association of individuals, by whatever name called, booked in its name or booked in the name of its associated entities

S.16 Obligations of promoter regarding insurance of real estate project.

       (1) The promoter shall obtain all such insurances as may be notified by the appropriate Government, including but not limited to insurance in respect of -
       (i) title of the land and building as a part of the real estate project; and
       (ii) construction of the real estate project.
       (2) The promoter shall be liable to pay the premium and charges in respect of the insurance specified in sub-section (1) and shall pay the same before transferring the insurance to the association of the allottees.
       (3) The insurance as specified under sub-section (1) shall stand transferred to the benefit of the allottee or the association of allottees, as the case may be, at the time of promoter entering into an agreement for sale with the allottee.
    

S.17 Transfer of title.

       (1) The promoter shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and hand over the physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws:
       Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within three months from date of issue of occupancy cert

S.18 Return of amount and compensation.

       (1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building,-
       (a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or
       (b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:
       Provided that where an al

S.19 Rights and duties of allottees.

       (1) The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules and regulations made thereunder or the agreement for sale signed with the promoter.
       (2) The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance with the terms and conditions of the agreement for sale.
       (3) The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas, as per the

S.20 Establishment and incorporation of Real Estate Regulatory Authority.

       (1) The appropriate Government shall, within a period of one year from the date of coming into force of this Act, by notification, establish an Authority to be known as the Real Estate Regulatory Authority to exercise the powers conferred on it and to perform the functions assigned to it under this Act:
       Provided that the appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Authority:
       Provided further that, the appropriate Government may, if it deems fit, establish more than one Authority in a State or Union territory, as the case may be:
       Provided also that until the establishment of a Regulatory Authority under this section, the appropriate Government shall, by order, designate any Regulatory Authority or any officer preferably the Secret

Legal Commentary on Section 20 of the Real Estate Regulation and Development Act, 2016

Introduction

The Real Estate Regulation and Development Act, 2016 (RERA) was enacted to promote transparency, accountability, and efficiency in the real estate sector in India. Section 20 specifically addresses the establishment and incorporation of the Real Estate Regulatory Authority (RERA) by the appropriate government, which plays a crucial role in regulating the real estate market and protecting the interests of consumers.

What Does Section 20 Say

Section 20 mandates the appropriate government to establish a Real Estate Regulatory Authority within one year from the commencement of the Act. This Authority is tasked with regulating the real estate sector and ensuring compliance with the provisions of the Act.

Essential Ingredients

• Establishment: The section requires the establishment of a regulatory authority by the government.
• Time Frame: It stipulates a one-year period for the establishment of the Authority.
• Regulatory Functions: The Authority is empowered to regulate real estate transactions and protect consumer interests.

Scope of Section

The scope of Section 20 extends to the entire real estate sector, encompassing all activities related to the sale, purchase, and development of real estate projects. It establishes a framework for the regulatory authority to function effectively, ensuring that all real estate projects are registered and comply with the law.

Punishment for Section

While Section 20 itself does not prescribe specific punishments, non-compliance with the provisions of the Act, including the establishment of the Authority, can lead to penalties as outlined in other sections of the Act, such as fines or imprisonment for promoters who violate the regulations.

Legal Comments

• Authority Establishment - The appropriate government is mandated to establish the Real Estate Regulatory Authority within one year of the Act's commencement, ensuring regulatory oversight in the real estate sector.
• Regulatory Framework - The establishment of RERA is crucial for creating a structured regulatory framework that enhances transparency and accountability in real estate transactions.
• Consumer Protection - The primary objective of Section 20 is to protect consumer interests by ensuring that real estate projects are regulated and that promoters comply with the law.
• Time-Bound Action - The one-year timeframe for establishing the Authority emphasizes the urgency of regulatory oversight in the real estate sector.
• Jurisdictional Authority - The establishment of RERA under Section 20 grants it jurisdiction to adjudicate disputes and enforce compliance with the Act. [ "Psa Impex Pvt. Ltd. VS Satbir Singh"]
• Regulatory Powers - The Authority has the power to frame regulations and rules to carry out its functions effectively, as per the provisions of the Act. [ "Psa Impex Pvt. Ltd. VS Satbir Singh"]
• Non-Compliance Consequences - Failure to establish the Authority within the stipulated time can lead to legal challenges and hinder the enforcement of the Act's provisions.
• Role in Dispute Resolution - RERA serves as a mechanism for speedy dispute resolution in real estate matters, enhancing consumer confidence in the sector. [ "Yogendra Kumar Gupta VS Union of India, Ministry of Housing and Urban Affairs"]
• Impact on Real Estate Market - The establishment of RERA is expected to positively impact the real estate market by ensuring that all projects are registered and comply with regulatory standards.
• Empowerment of Consumers - By regulating the real estate sector, RERA empowers consumers with rights and remedies in case of violations by promoters.
• Regulatory Authority's Functions - The Authority is tasked with various functions, including the registration of real estate projects and the regulation of real estate agents. [ "Psa Impex Pvt. Ltd. VS Satbir Singh"]
• Legislative Intent - The legislative intent behind Section 20 is to create a robust regulatory framework that fosters trust and integrity in real estate transactions.
• Judicial Interpretation - Courts have upheld the necessity of establishing RERA as a critical component of the regulatory framework for real estate, emphasizing its role in consumer protection. [ "Yogendra Kumar Gupta VS Union of India, Ministry of Housing and Urban Affairs"]
• Regulatory Compliance - The establishment of RERA is essential for ensuring that promoters adhere to the legal requirements of the Act, thereby safeguarding consumer interests.
• Framework for Accountability - Section 20 lays the groundwork for accountability in the real estate sector, ensuring that promoters are held responsible for their actions.
• Integration with Local Laws - The establishment of RERA must align with local laws and regulations to ensure comprehensive oversight of the real estate sector.
• Future Amendments - The framework established by Section 20 may be subject to future amendments to enhance its effectiveness and address emerging challenges in the real estate sector.
• Public Awareness - The establishment of RERA is expected to increase public awareness about consumer rights and the regulatory framework governing real estate transactions.
• Inter-Governmental Coordination - Effective implementation of Section 20 requires coordination between various government departments to ensure the smooth functioning of the regulatory authority.
• Long-term Impact - The long-term impact of establishing RERA will be a more organized and transparent real estate market, benefiting both consumers and promoters.

S.21 Composition of Authority.

The Authority shall consist of a Chairperson and not less than two whole time Members to be appointed by the appropriate Government.

S.22 Qualifications of Chairperson and Members of Authority.

       The Chairperson and other Members of the Authority shall be appointed by the appropriate Government on the recommendations of a Selection Committee consisting of the Chief Justice of the High Court or his nominee, the Secretary of the Department dealing with Housing and the Law Secretary, in such manner as may be prescribed, from amongst persons having adequate knowledge of and professional experience of at-least twenty years in case of the Chairperson and fifteen years in the case of the Members 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:
       Provided that a person who is, or has been, in the service of the State Government shall not be appointed as a Chairperson unless such person has held the post

S.23 Term of office of Chairperson and Members

       (1) The Chairperson and Members shall hold office for a term not exceeding five years from the date on which they enter upon their office, or until they attain the age of sixty-five years, whichever is earlier and shall not be eligible for re-appointment.
       (2) Before appointing any person as a Chairperson or Member, the appropriate Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Member.

S.24 Salary and allowances payable to Chairperson and Members.

       (1) The salary and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as may be prescribed and shall not be varied to their disadvantage during their tenure.
       (2) Notwithstanding anything contained in sub-sections (1) and (2) of section 23, the Chairperson or a Member, as the case may be, may,-
       (a) relinquish his office by giving in writing, to the appropriate Government, notice of not less than three months; or
       (b) be removed from his office in accordance with the provisions of section 26 of this Act.
       (3) Any vacancy caused to the office of the Chairperson or any other Member shall be filled-up within a period of three months from the date on which such vacancy occurs.

S.25 Administrative powers of Chairperson.

The Chairperson shall have powers of general superintendence and directions in the conduct of the affairs of Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such administrative powers and functions of the Authority as may be prescribed.

S.26 Removal of Chairperson and Members from office in certain circumstances.

       (1) The appropriate Government may, in accordance with the procedure notified, remove from office the Chairperson or other Members, if the Chairperson or such other Member, as the case may be,-
       (a) has been adjudged as an insolvent; or
       (b) has been convicted of an offence, involving moral turpitude; or
       (c) has become physically or mentally incapable of acting as a Member; or
       (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or
       (e) has so abused his position as to render his continuance in office prejudicial to the public interest.
       (2) The Chairperson or Member shall not be removed from his office on the ground

S.27 Restrictions on Chairperson or Members on employment after cessation of office.

       (1) The Chairperson or a Member, ceasing to hold office as such, shall not-
       (a) accept any employment in, or connected with, the management or administration of, any person or organisation which has been associated with any work under this Act, from the date on which he ceases to hold office:
       Provided that nothing contained in this clause shall apply to any employment under the appropriate Government or a local authority or in any statutory authority or any corporation established by or under any Central, State or provincial Act or a Government Company, as defined under clause (45) of section 2 of the Companies Act, [18 of 2013] 2013, which is not a promoter as per the provisions of this Act;
       (b) act, for or on behalf of any person or organisation in connection with any specific proceeding or

S.28 Officers and other employees of Authority.

       (1) The appropriate Government may, in consultation with the Authority appoint such officers and employees as it considers necessary for the efficient discharge of their functions under this Act who would discharge their functions under the general superintendence of the Chairperson.
       (2) The salary and allowances payable to, and the other terms and conditions of service of, the officers and of the employees of the Authority appointed under sub-section (1) shall be such as may be prescribed.

S.29 Meetings of Authority.

       (1) The Authority shall meet at such places and times, and shall follow such rules of procedure in regard to the transaction of business at its meetings, (including quorum at such meetings), as may be specified by the regulations made by the Authority.
       (2) If the Chairperson for any reason, is unable to attend a meeting of the Authority, any other Member chosen by the Members present amongst themselves at the meeting, shall preside at the meeting.
       (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote.
       (4) The questions which come up before the Authority shall be dealt with a

S.30 Vacancies, etc., not to invalidate proceeding of Authority.

       No act or proceeding of the Authority shall be invalid merely by reason of-
       (a) any vacancy in, or any defect in the constitution of, the Authority; or
       (b) any defect in the appointment of a person acting as a Member of the Authority; or
       (c) any irregularity in the procedure of the Authority not affecting the merits of the case.

S.31 Filing of complaints with the Authority or the adjudicating officer.

       (1) Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder against any promoter allottee or real estate agent, as the cae may be.
       Explanation.-For the purpose of this sub-section "person" shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force.
       (2) The form, manner and fees for filing complaint under sub-section (1) shall be such as may be specified by regulations.

S.32 Functions of Authority for promotion of real estate sector.

       The Authority shall in order to facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector make recommendations to the appropriate Government of the competent authority, as the case may be, on,-
       (a) protection of interest of the allottees, promoter and real estate agent;
       (b) creation of a single window system for ensuring time bound project approvals and clearances for timely completion of the project;
       (c) creation of a transparent and robust grievance redressal mechanism against acts of omission and commission of competent authorities and their officials;
       (d) measures to encourage investment in the real estate sector including measures to increase financial assistance to affordable housing segment;

S.33 Advocacy and awareness measures.

       (1) The appropriate Government may, while formulating a policy on real estate sector (including review of laws related to real estate sector) or any other matter, make a reference to the Authority for its opinion on possible effect, of such policy or law on real estate sector and on the receipt of such a reference, the Authority shall within a period of sixty days of making such reference, give its opinion to the appropriate Government which may thereafter take further action as it deems fit.
       (2) The opinion given by the Authority under sub-section (1) shall not be binding upon the appropriate Government in formulating such policy or laws.
       (3) The Authority shall take suitable measures for the promotion of advocacy, creating awareness and imparting training about laws relating to real estate sector and policies.

S.34 Functions of Authority.

       The functions of the Authority shall include-
       (a) to register and regulate real estate projects and real estate agents registered under this Act;
       (b) to publish and maintain a website of records, for public viewing, of all real estate projects for which registration has been given, with such details as may be prescribed, including information provided in the application for which registration has been granted;
       (c) to maintain a database, on its website, for public viewing, and enter the names and photographs of promoters as defaulters including the project details, registration for which has been revoked or have been penalised under this Act, with reasons therefor, for access to the general public;
       (d) to maintain a database, on its website, for pub

S.35 Powers of Authority to call for information, conduct investigations.

       (1) Where the Authority considers it expedient to do so, on a complaint or suo motu, relating to this Act or the rules of regulations made thereunder, it may, by order in writing and recording reasons therefor call upon any promoter or allottee or real estate agent, as the case may be, at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require and appoint one or more persons to make an inquiry in relation to the affairs of any promoter or allottee or the real estate agent, as the case may be.
       (2) Notwithstanding anything contained in any other law for the time being in force, while exercising the powers under sub-section (1), the Authority shall have the same powers as are vested in a civil court under the Code of Civil Procedure, [5 of 1908] 1908 while trying a suit, in respect of the following matters, namely:-
 

S.36 Power to issue interim orders.

Where during an inquiry, the Authority is satisfied that an act in contravention of this Act, or the rules and regulations made thereunder, has been committed and continues to be committed or that such act is about to be committed, the Authority may, by order, restrain any promoter, allottee or real estate agent from carrying on such act until the conclusion of such inquiry of until further orders, without giving notice to such party, where the Authority deems it necessary.

S.37 Powers of Authority to issue directions.

The Authority may, for the purpose of discharging its functions under the provisions of this Act or rules or regulations made thereunder, issue such directions from time to time, to the promoters or allottees or real estate agents, as the case may be, as it may consider necessary and such directions shall be binding on all concerned.

S.38 Powers of Authority.

       (1) The Authority shall have powers to impose penalty or interest, in regard to any contravention of obligations cast upon the promoters, the allottees and the real estate agents, under this Act or the rules and the regulations made thereunder.
       (2) The Authority shall be guided by the principles of natural justice and, subject to the other provisions of this Act and the rules made thereunder, the Authority shall have powers to regulate its own procedure.
       (3) Where an issue is raised relating to agreement, action, omission, practice or procedure that-
       (a) has an appreciable prevention, restriction or distortion of competition in connection with the development of a real estate project; or
       (b) has effect of market power of monopoly situation being abu

S.39 Rectification of orders.

       The Authority may, at any time within a period of two years from the date of the order made under this Act, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties:
       Provided that no such amendment shall be made in respect of any order against which an appeal has been preferred under this Act:
       Provided further that the Authority shall not, while rectifying any mistake apparent from record, amend substantive part of its order passed under the provisions of this Act.

S.40 Recovery of interest or penalty or compensation and enforcement of order, etc.

       (1) If a promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him, by the adjudicating officer or the Regulatory Authority or the Appellate Authority, as the case may be, under this Act or the rules and regualtions made thereunder, it shall be recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed as an arrears of land revenue.
       (2) If any adjudicating officer or the Regulatory Authority or the Appellate Tribunal, as the case may be, issues any order or directs any person to do any act, or refrain from doing any act, which it is empowered to do under this Act or the rules or regulations made thereunder, then in case of failure by any person to comply with such order or direction, the same shall be enforced, in such manner as may be prescribed.

S.41 Establishment of Central Advisory Council.

       (1) The Central Government may, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Advisory Council.
       (2) The Minister to the Government of India in charge of the Ministry of the Central Government dealing with Housing shall be the ex officio Chairperson of the Central Advisory Council.
       (3) The Central Advisory Council shall consist of representatives of the Ministry of Finance, Ministry of Industry and Commerce, Ministry of Urban Development, Ministry of Consumer Affairs, Ministry of Corporate Affairs, Ministry of Law and Justice, Niti Aayog, National Housing Bank, Housing and Urban Development Corporation, five representatives of State Governments to be selected by rotation, five representatives of the Real Estate Regulatory Authorities to be selected by rot

S.42 Functions of Central Advisory Council.

       (1) The functions of the Central Advisory Council shall be to advise and recommend the Central Government,-
       (a) on all matters concerning the implementation of this Act;
       (b) on major questions of policy;
       (c) towards protection of consumer interest;
       (d) to foster the growth and development of the real estate sector;
       (e) on any other matter as may be assigned to it by the Central Government.
       (2) The Central Government may specify the rules to give effect to the recommendations of the Central Advisory Council on matters as provided under sub-section (1).

S.43 Establishment of Real Estate Appellate Tribunal.

       (1) The appropriate Government shall, within a period of one year from the date of coming into force of this Act, by notification, establish an Appellate Tribunal to be known as the - (name of the State/Union territory) Real Estate Appellate Tribunal.
       (2) The appropriate Government may, if it deems necessary, establish one or more benches of the Appellate Tribunal, for various jurisdictions, in the State or Union territory, as the case may be.
       (3) Every bench of the Appellate Tribunal shall consist of at least one Judicial Member and one Administrative to Technical Member.
       (4) The appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Appellate Tribunal:
       Provided that, until the establishment of

S.44 Application for settlement of disputes and appeals to Appellate Tribunal.

       (1) The appropriate Government or the competent authority or any person aggrieved by any direction or order or decision of the Authority or the adjudicating officer may prefer an appeal to the Appellate Tribunal.
       (2) Every appeal made under sub-section (1) shall be preferred within a period of sixty days from the date on which a copy of the direction or order or decision made by the Authority or the adjudicating officer is received by the appropriate Government or the competent authority or the aggrieved person and it shall be in such form and accompanied by such fee, as may be prescribed:
       Provided that the Appellate Tribunal may entertain any appeal after the expiry of sixty days if it is satisfied that there was sufficient cause for not filling it within that period.
       (3) On receipt of an app

S.45 Composition of Appellate Tribunal.

       The Appellate Tribunal shall consist of a Chairperson and not less than two whole time Members of which one shall be a Judicial member and other shall be a Technical or Administrative Member, to be appointed by the appropriate Government.
       Explanation.-For the purposes of this Chapter,-
       (i) "Judicial Member" means a Member of the Appellate Tribunal appointed as such under clause (b) of sub-section (1) of section 46;
       (ii) "Technical or Administrative Member" means a Member of the Appellate Tribunal appointed as such under clause (c) of sub-section (1) of section 46.

S.46 Qualifications for appointment of Chairperson and Members.

       (1) A person shall not be qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless he,-
       (a) in the case of Chairperson, is or has been a Judge of a High Court; and
       (b) in the case of a Judicial Member he has held a judicial office in the territory of India for at least fifteen years or has been a member of the Indian Legal Service and has held the post of Additional Secretary of that service or any equivalent post, or has been an advocate for at least twenty years with experience in dealing with real estate matters; and
       (c) in the case of a Technical or Administrative Member, he is a person who is well-versed in the field of urban development, housing, real estate development, infrastructure, economics, planning, law, commerce, accountancy, industry, management

S.47 Term of office of Chairperson and Members.

       (1) The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall hold office, as such for a term not exceeding five years from the date on which he enters upon his office, but shall not be eligible for re-appointment :
       Provided that in case a person, who is or has been a Judge of a High Court, has been appointed as Chairperson of the Tribunal, he shall not hold office after he has attained the age of sixty-seven years :
       Provided further that no Judicial Member or Technical or Administrative Member shall hold office after he has attained the age of sixty-five years.
       (2) Before appointing any person as Chairperson or Member, the appropriate Government shall satisfy itself that the person does not have any such financial or other interest, as is likely to affect prejudici

S.48 Salary and allowances payable to Chairperson and Members.

       (1) The salary and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as may be prescribed and shall not be varied to their disadvantage during their tenure.
       (2) Notwithstanding anything contained in sub-sections (1) and (2) of section 47, the Chairperson or a Member, as the case may be, may:-
       (a) relinquish his office by giving in writing to the appropriate Government a notice of not less than three months;
       (b) be removed from his office in accordance with the provisions of section 49.
       (3) A vacancy caused to the office of the Chairperson or any other Member, as the case may be, shall be filled-up within a period of three months from the date on which such vacancy occurs.

S.49 Removal of Chairperson and Member from office in certain circumstances.

       (1) The appropriate Government may, in consultation with the Chief Justice of the High Court, remove from office of the Chairperson or any judicial Member or Technical or Administrative Member of the Appellate Tribunal, who-
       (a) has been adjudged as an insolvent; or
       (b) has been convicted of an offence which, in the opinion of the appropriate Government involves moral turpitude; or
       (c) has become physically or mentally incapable; or
       (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or
       (e) has so abused his position as to render his continuance in office prejudicial to the public interest.
       (2) The Chairperson o

S.50 Restrictions on Chairperson or Judicial Member or Technical or Administrative Member on employment after cessation of office.

       (1) The Chairperson or Judicial Member or Technical or Administrative Member, ceasing to hold office as such shall not:-
       (a) Accept any employment in, or connected with, the management or administration of, any person or organisation which has been associated with any work under this Act, from the date on which he ceases to hold office:
       Provided that nothing contained in this clause shall apply to any employment under the appropriate Government or a local authority or in any statutory authority or any corporation established by or under any Central, State of provincial Act or a Government Company as defined under clause (45) of section 2 of the Companies Act, [18 of 2013] 2013, which is not a promoter as per the provisions of this Act;
       (b) act, for or on behalf of any person or organisation in

S.51 Officers and other employees of Appellate Tribunal.

       (1) The appropriate Government shall provide the Appellate Tribunal with such officers and employees as it may deem fit.
       (2) The officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of its Chairperson.
       (3) The salary and allowances payable to, and the other terms and conditions of service of, the officers and employees of the Appellate Tribunal shall be such as may be prescribed.

S.52 Vacancies.

If, for reason other than temporary absence, any vacancy occurs in the office of the Chairperson or a Member of the Appellate Tribunal, the appropriate Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at which the vacancy is filled.

S.53 Powers of Tribunal

       (1) The Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, [5 of 1908.] 1908 but shall be guided by the principles of natural justice.
       (2) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own procedure.
       (3) The Appellate Tribunal shall also not be bound by the rules of evidence contained in the Indian Evidence Act, [1 of 1872] 1872.
       (4) The Appellate Tribunal shall have, for the purpose of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, [5 of 1908] 1908 in respect of the following matters, namely:-
       (a) summoning and enforcing the attendance of any person and examining him on oath;

S.54 Administrative powers of Chairperson of Appellate Tribunal.

The Chairperson shall have powers of general superintendence and direction in the conduct of the affairs of Appellate Tribunal and he shall, in addition to presiding over the meetings of the Appellate Tribunal exercise and discharge such administrative powers and functions of the Appellate Tribunal as may be prescribed.

S.55 Vacancies, etc., not to invalidate proceeding of Appellate Tribunal.

       No act or proceeding of the Appellate Tribunal shall be invalid merely by reason of-
       (a) any vacancy in, or any defect in the constitution of, the Appellate Tribunal, or
       (b) any defect in the appointment of a person acting as a Member of the Appellate Tribunal; or
       (c) Any irregularity in the procedure of the Appellate Tribunal not affecting the merits of the case.

S.56 Right to legal representation.

       The applicant or appellant may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal or the Regulatory Authority or the adjudicating officer, as the case may be.
       Explanation.-For the purposes of this section,-
       (a) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, [38 of 1949] 1949 or any other law for the time being in force and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;
       (b) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secr

S.57 Orders passed by Appellate Tribunal to be executable as a decree.

       (1) Every order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court.
       (2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by the court.

S.58 Appeal to High Court.

       (1) Any person aggrieved by any decision or order of the Appellate Tribunal, may, file an appeal to the High Court, within a period of sixty days from the date of communication of the decision or order of the Appellate Tribunal, to him, on any one or more of the grounds specified in section 100 of the Code of Civil Procedure, [5 of 1908] 1908:
       Provided that the High Court may entertain the appeal after the expiry of the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.
       Explanation.-The expression "High Court" means the High Court of a State or Union territory where the real estate project is situated.
       (2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent of the p

S.59 Punishment for non-registration under section 3.

       (1) If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend up to ten per cent. of the estimated cost of the real estate project as determined by the Authority.
       (2) If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent. of the estimated cost of the real estate project, or with both.

S.60 Penalty for contravention of section 4.

If any promoter provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project, as determined by the Authority.

S.61 Penalty for contravention of other provisions of this Act.

If any promoter contravenes any other provisions of this Act, other than that provided under section 3 or section 4, or the rules or regulations made thereunder, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project as determined by the Authority.

S.62 Penalty for non- registration and contravention under sections 9 and 10.

If any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent. of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

S.63 Penalty for failure to comply with orders of Authority by promoter.

If any promoter, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of the real estate project as determined by the Authority.

S.64 Penalty for failure to comply with orders of Appellate Tribunal by promoter.

       If any promoter, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Trinbunal, he shall be punishable with imprisonment for a term which may extend up to three years or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of the real estate project, or with both.

S.65 Penalty for failure to comply with orders of Authority by real estate agent.

If any real estate agent, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated and as determined by the Authority.

S.66 Penalty for failure to comply with orders of Appellate Tribunal by real estate agent.

If any real estate agent, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated, or with both.

S.67 Penalty for failure to comply with orders of Authority by allottee.

If any allottee, who fails to comply with, or contravenes any of the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to five per cent. of the plot, apartment or building cost, as the case may be, as determined by the Authority.

S.68 Penalty for failure to comply with orders of Appellate Tribunal by allottee.

       If any allottee, who fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the plot, apartment or building cost, as the case may be, or with both.

S.69 Offences by companies.

       (1) Where an Offence under this Act has been committed by a company, every person who, at the time, the offence was committed was in charge of, or was responsible to the company for the conduct of, the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
       Provided that nothing contained in this sub-section, shall render any such person liable to any punishment under this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
       (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of

S.70 Compounding of offences.

       Notwithstanding anything contained in the Code of Criminal Procedure, [2 of 1974] 1973, if any person is punished with imprisonment under this Act, the punishment may, either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed:
       Provided that the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded.

S.71 Power to adjudicate.

       (1) For the purpose of adjudging compensation under sections 12, 14, 18 and section 19, the Authority shall appoint in consultation with the appropriate Government one or more judicial officer as deemed necessary, who is or has been a District Judge to be an adjudicating officer for holding an inquiry in the prescribed manner, after giving any person concerned a reasonable opportunity of being heard:
       Provided that any person whose complaint in respect of matters covered under sections 12, 14, 18 and section 19 is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, [68 of 1986] 1986, on or before the commencement of this Act, he may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending

S.72 Factors to be taken into account by the adjudicating officer

       While adjudging the quantum of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due regard to the following factors, namely:-
       (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
       (b) the amount of loss caused as a result of the default;
       (c) the repetitive nature of the default;
       (d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice.

S.73 Grants and loans by Central Government.

The Central Government may, after due appropriation made by Parliament in this behalf, make to the Authority grants and loans of such sums of money as that Government may consider necessary.

S.74 Grants and loans by State Government.

The State Government may, after due appropriation made by State Legislature by law in this behalf, make to the Authority, grants and loans of such sums of money as the State Government may think fit for being utilised for the purposes of this Act.

S.75 Constitution of Fund.

       (1) The appropriate Government shall constitute a fund to be called the 'Real Estate Regulatory Fund' and there shall be credited thereto,-
       (a) all Government grants received by the Authority;
       (b) the fees received under this Act;
       (c) the interest accrued on the amounts referred to in clauses (a) to (b).
       (2) The Fund shall be applied for meeting-
       (a) the salaries and allowances payable to the Chairperson and other Members, the adjudicating officer and the administrative expenses including the salaries and allowances payable to be officers and other employees of the Authority and the Appellate Tribunal;
       (b) the other expenses of the Authority in connection with

S.76 Crediting sums realised by way of penalties to Consolidated Fund of India or State account.

       (1) All sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in the Union terriroties, shall be credited to the Consolidated Fund of India.
       (2) All sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in a State, shall be credited to such account as the State Government may specify.

S.77 Budget, accounts and audit.

       (1) The Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the appropriate Government in consultation with the Comptroller and Auditor-General of India.
       (2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India.
       (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Authority under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in con

S.78 Annual report.

       (1) The Authority shall prepare once in every year, in such form and at such time as may be prescribed by the appropriate Government,-
       (a) a description of all the activities of the Authority for the previous year;
       (b) the annual accounts for the previous year; and
       (c) the programmes of work for the coming year.
       (2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament or, as the case may be, before the State Legislature or the Union Territory Legislature, where it consists of two Houses, or where such legislature consists of one House, before that House.

S.79 Bar of jurisdiction.

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

S.80 Cognizance of offences.

       (1) No court shall take cognizance of any offence punishable under this Act or the rules or regulations made thereunder save on a complaint in writing made by the Authority or by any officer of the Authority duly authorised by it for this purpose.
       (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.

S.81 Delegation.

The Authority may, by general or special order in writing, delegate to any member, officer of the Authority or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to make regulations under section 85, as it may deem necessary.

S.82 Power of appropriate Government to supersede Authority.

       (1) If, at any time, the appropriate Government is of the opinion,-
       (a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or
       (b) that the Authority has persistently defaulted in complying with any direction given by the appropriate Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or
       (c) that circumstances exist which render it necessary in the public interest so to do, the appropriate Government may, by notification, supersede the Authority f

S.83 Powers of appropriate Government to issue directions to Authority and obtain reports and returns.

       (1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in exercise of its powers and in performance of its functions under this Act, be bound by such directions on questions of policy, as the appropriate Government may give in writing to it from time to time :
       Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.
       (2) If any dispute arises between the appropriate Government and the Authority as to whether a question is or is not a question of policy, the decision of the appropriate Government thereon shall be final.
       (3) The Authority shall furnish to the appropriate Government such returns or other information with respect to its activities as the appropriate Gover

S.84 Power of appropriate Government to make rules.

       (1) The appropriate Government shall, within a period of six months of the commencement of this Act, by notification, make rules for carrying out the provisions of this Act.
       (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
       (a) information and documents for application to Authority for registration under clause (m) of sub-section (2) of section 4;
       (b) the form and manner of making application and fee and documents to be accompanied with such application as under sub-section (2) of section 9;
       (c) the period, manner and conditions under which the registration is to be granted under sub-section (3) of section 9;
     &nb

S.85 Power to make regulations.

       (1) The Authority shall, within a period of three months of its establishment, by notification, make regulations, consistent with this Act and the rules made thereunder to carry out the purposes of this Act.
       (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-
       (a) the form and manner of making application and fee payable herewith under sub-section (1) of section 4;
       (b) the form of application and the fees for extension of registration under section 6;
       (c) such other information and documents required under clause (f) of sub-section (1) of section 11;
       (d) display of sanctioned plans, layout plans al

S.86 Laying of rules.

       (1) Every rule made by the Central Government, every regulation made by the Authority under the Union terriotry of Delhi and the Union territories without Legislature and every notification issued by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule of regulation or in the notification, as the case may be, or both Houses agree that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, howev

S.87 Members, etc., to be public servants.

The Chairperson, Members and other officers and employees of the Authority, and the Appellate Tribunal and the adjudicating officer shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code [45 of 1860].

S.88 Application of other laws not barred.

       The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.

Real Estate Regulation and Development Act, 2016 – Section 88

Introduction

Section 88 of the Real Estate (Regulation and Development) Act, 2016 (RERA) is a miscellaneous provision that ensures the Act does not override existing laws. It operates as a non-obstante clause, clarifying that RERA's remedies are additional and not exclusive, thereby preserving the jurisdiction of other forums such as Consumer Forums, Lok Adalats, and Arbitration.

What does Section Says

Section 88 states:

"The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force."This means RERA coexists with other laws, and consumers can still pursue remedies under parallel statutes.

Essential Ingredients

1. Additive Nature: RERA supplements, but does not replace, existing laws.
2. Non-Derogation: No provision of RERA should weaken other laws.
3. Preservation of Jurisdiction: Forums under Consumer Protection Act, Arbitration, or other statutes retain their authority.
4. Harmonious Construction: Conflicts between RERA and other laws must be resolved to avoid inconsistency.

Scope of Section

• Applies to all disputes arising under RERA or related to real estate transactions.
• Ensures parallel remedies remain available to allottees, promoters, and agents.
• Prevents RERA from becoming the exclusive dispute resolution mechanism.
• Protects the jurisdiction of Consumer Forums, Lok Adalats, Arbitration, and Civil Courts.

Punishment for Section

Section 88 itself does not prescribe punishment. However, violations of RERA provisions (e.g., non-registration, non-compliance) attract penalties under Sections 59–69, including:- Imprisonment up to 3 years.- Fine up to 10% of the project’s estimated cost.- Compensation to allottees.

Legal Comments

• "Non-Obstante Clause" - Section 88 acts as a non-obstante clause ensuring RERA does not override other laws -
• "Additive Remedies" - Remedies under RERA are additional and not exclusive, allowing parallel proceedings under other laws - [Pioneer Urban Land and Infrastructure Limited VS Union of India - 2019 0 Supreme(SC) 843]
• "Preservation of Consumer Forum Jurisdiction" - Consumer Forums retain jurisdiction to entertain housing disputes despite RERA's enactment - [Santhosh T. N. , S/o. T. K. Narayanan VS Permanent Lok Adalath, Rep. By Its Secretary, Ernakulam - 2023 0 Supreme(Ker) 87]
• "Arbitration Not Ousted" - Section 88 ensures arbitration agreements remain valid and enforceable, as RERA cannot oust arbitration tribunals - [Army Welfare Housing Organisation South Hutments, New Delhi VS Col. R. Ganesan - 2021 0 Supreme(Mad) 2314]
• "Lok Adalat Jurisdiction" - Permanent Lok Adalat under the Legal Services Authorities Act retains jurisdiction over housing disputes, as RERA does not oust it - [Santhosh T. N. , S/o. T. K. Narayanan VS Permanent Lok Adalath, Rep. By Its Secretary, Ernakulam - 2023 0 Supreme(Ker) 87]
• "Harmonious Construction" - RERA and other laws must be read harmoniously; conflicts resolved to avoid inconsistency - [Pioneer Urban Land and Infrastructure Limited VS Union of India - 2019 0 Supreme(SC) 843]
• "Parallel Remedies" - Allottees can simultaneously seek relief under RERA, Consumer Protection Act, or Arbitration - [Pioneer Urban Land and Infrastructure Limited VS Union of India - 2019 0 Supreme(SC) 843]
• "No Exclusive Remedy" - Section 88 ensures RERA is not the sole remedy, preserving rights under other statutes -
• "Consumer Protection Act" - Section 88 of RERA cannot be read in isolation and must be interpreted with the Consumer Protection Act -
• "Punishment Under RERA" - While Section 88 does not prescribe punishment, other sections (59–69) penalize violations with imprisonment and fines -
• "Promoter Obligations" - Promoters must comply with RERA orders; failure attracts penalties under Sections 67–69 -
• "Allottee Rights" - Allottees can claim refunds, compensation, or possession under RERA, in addition to other remedies - [Pioneer Urban Land and Infrastructure Limited VS Union of India - 2019 0 Supreme(SC) 843]
• "Insolvency Code Coexistence" - RERA operates alongside the Insolvency and Bankruptcy Code, with the latter prevailing in case of conflict - [Pioneer Urban Land and Infrastructure Limited VS Union of India - 2019 0 Supreme(SC) 843]
• "Deeming Provision" - Section 88 clarifies that RERA’s provisions are deemed additional, not replacement, to existing laws - [Pioneer Urban Land and Infrastructure Limited VS Union of India - 2019 0 Supreme(SC) 843]
• "Economic Legislation" - Courts must give deference to RERA’s economic objectives while interpreting Section 88 harmoniously - [Pioneer Urban Land and Infrastructure Limited VS Union of India - 2019 0 Supreme(SC) 843]
• "Read with Other Laws" - Section 88 requires RERA to be read with other laws to avoid conflict and ensure coexistence -
• "No Ouster of Jurisdiction" - Section 88 explicitly prevents the ousting of jurisdiction of any other authority or forum - [Santhosh T. N. , S/o. T. K. Narayanan VS Permanent Lok Adalath, Rep. By Its Secretary, Ernakulam - 2023 0 Supreme(Ker) 87]
• "Consumer Protection Act" - Section 88 ensures that RERA does not bar complaints under the Consumer Protection Act, 1986 -
• "Tamil Nadu RERA" - Tamil Nadu RERA upheld Section 88’s position that RERA is in addition to, and not in derogation of, other laws - [Army Welfare Housing Organisation South Hutments, New Delhi VS Col. R. Ganesan - 2021 0 Supreme(Mad) 2314]

S.89 Act to have overriding effect.

The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

S.90 Protection of action taken in good faith.

No suit, prosecution or other legal proceedings shall lie against the appropriate Government or the Authority or any officer of the appropriate Government or any member, officer or other employees of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder.

S.91 Power to remove difficulties.

       (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:
       Provided that no order shall be made under this section after the expiry of two years from the date of the commencement of this Act.
       (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

S.92 Maharashtra Act No. II of 2014

The Maharashtra Housing (Regulation and Development) Act, 2012 is hereby repealed.