REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
[25th March, 2016.]
An
Act
to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:-
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to promote transparency, accountability, and efficiency in the real estate sector in India. It aims to protect the interests of homebuyers and establish a regulatory framework for the real estate industry.
The preliminary section of RERA lays the foundation for the Act, defining key terms and establishing the scope and applicability of the legislation. It sets the stage for the subsequent provisions that govern real estate transactions, registration, and the roles of various stakeholders.
The preliminary section applies to all real estate projects and transactions within the jurisdiction of the Act. It encompasses residential and commercial properties, ensuring that all parties involved in real estate transactions adhere to the regulations set forth.
While the preliminary section itself does not prescribe specific punishments, subsequent sections of the Act outline penalties for non-compliance with its provisions, including fines and imprisonment for promoters and agents who violate the regulations.
(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:
In this Act, unless the context otherwise requires,-
(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 building, as the case may be, has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter,
(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 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 authority, it may, by order, direct the promoter of such project to register with the
(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:-
(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, any delay in its completion, details of cases pending, details of type of land and payments pending;
<(1) On receipt of the application under sub-section (1) of section 4, the Authority shall within a period of thirty days.
(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 the Authority fails to grant the registration or reject the application, as the case may be, as provided under sub-section (1
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 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" shall mean a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature
(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-
(b) the promoter violates any of the terms or conditions of the approval given bythe 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 including any of the following practices, namely:-
(A) the practice of making any statement, whether in writing or
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 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.
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to promote transparency, accountability, and efficiency in the real estate sector in India. It aims to protect the interests of consumers and establish a regulatory framework for the real estate industry.
Section 8 of the RERA Act addresses the obligations of the Real Estate Regulatory Authority (RERA) in the event of the lapse or revocation of a project's registration. It outlines the procedures and responsibilities that the Authority must undertake to protect the interests of homebuyers when a project is no longer registered.
The scope of Section 8 encompasses:- The procedural framework for handling cases of registration lapse or revocation.- The responsibilities of the RERA in ensuring that affected consumers are informed and their interests are protected.- Mechanisms for addressing grievances arising from such lapses or revocations.
While Section 8 itself does not prescribe specific punishments, violations related to the obligations outlined in this section 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 Appellate Tribunal and Regulatory Authority.
-(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-
(b) reject the application for re
Every real estate agent registered under section 9 shall-
(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 himself has approval or affiliation which such promoter or himself does not have;
(C) makes a false or misleading representation concerning the services;
- (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 webpage 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-
(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;
(e) quarterly up-to-date status of the project; and
(f) such other information and documents as may be specified by the
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 the 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.
(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 over, the rates of interest payable by the promoter to the allottee and the allottee to t
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to promote transparency, accountability, and efficiency in the real estate sector. Section 13 specifically addresses the obligations of promoters regarding advance payments from buyers, aiming to protect consumer interests and ensure fair practices in real estate transactions.
Section 13 prohibits promoters from accepting any advance payment exceeding 10% of the total cost of an apartment, plot, or building without first entering into a registered agreement for sale. This provision is designed to safeguard buyers from potential fraud and ensure that they are not financially committed without a formal contract.
The scope of Section 13 extends to all real estate transactions involving residential properties, ensuring that buyers are not coerced into making substantial payments without legal protection. It applies uniformly across the real estate sector, promoting a standard practice for all promoters.
Violations of Section 13 can lead to penalties as outlined in Section 66 of the Act, which may include fines or imprisonment for promoters who fail to comply with the provisions regarding advance payments and agreements.
(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-
(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:
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 or related enterprises, shall be considered as one allottee only.
(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 -
(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.
(4) On formation of the association of the allottees, all documents relating to the insurance specified under sub-section (1) sh
(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:
(2) After obtaining the
Section 17 of the RERA Act, 2016, primarily deals with the transfer of title of the real estate project from the promoter to the allottees, establishing the promoter’s obligation to execute a registered conveyance deed. This provision is central to ensuring transparency, legal enforceability, and protection of the rights of homebuyers and investors in real estate transactions. It aims to formalize the transfer process, prevent fraud, and promote accountability among developers.
Section 17 mandates that the promoter shall execute a registered conveyance deed in favor of the allottee along with the undivided share in the land and common areas, within a specified period after completion of the project. It emphasizes that the transfer of ownership must be through a registered deed, ensuring legal sanctity and public record of ownership rights.
Failure to execute or register a conveyance deed within the stipulated time can lead to:- Legal action: Homebuyers or allottees can approach the adjudicating officer or court for enforcement.- Penalties: Developers may be subject to penalties, fines, or even imprisonment under provisions of the Act.- Compensation: Homebuyers can claim compensation for delay or breach of contractual obligations.- Revocation of registration: The project’s registration can be canceled, and further legal consequences may follow.
Section 17 of the RERA Act, 2016, is a cornerstone provision that mandates the formal, legal transfer of ownership of real estate projects from promoters to allottees through a registered conveyance deed. Its purpose is to ensure transparency, prevent fraud, and secure the rights of homebuyers. The statutory obligation is enforceable, with penalties and legal remedies available for non-compliance, thereby strengthening the integrity of real estate transactions and promoting confidence in the sector.
Note: The references are based on the provided sources and standard legal interpretations of Section 17 and related provisions of the RERA Act, 2016.
(1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building,-
(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 allottee does not intend to withdraw from the project, he shall be paid, by the promot
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to promote transparency, accountability, and efficiency in the real estate sector. Section 18 of RERA specifically addresses the rights of allottees in cases where promoters fail to deliver possession of properties as per the agreed terms.
Section 18 mandates that if a promoter fails to complete or is unable to give possession of an apartment, plot, or building in accordance with the terms of the agreement, they are liable to return the amount received from the allottees along with interest. If the allottee does not wish to withdraw from the project, the promoter must pay interest for every month of delay until possession is handed over.
Section 18 applies to all real estate projects registered under RERA. It provides a framework for allottees to seek redressal in cases of non-compliance by promoters, ensuring that their financial interests are protected.
While Section 18 itself does not prescribe specific penalties, non-compliance can lead to penalties under other sections of RERA, including fines and imprisonment for promoters who violate the provisions of the Act.
(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 declaration given by the promoter under sub-clause (C) of clause (I) of sub-section (2)
(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 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 Secretary of the department dealing with Housing, as the Regulatory Authority for the purposes under this Act:
The Authority shall consist of a Chairperson and not less than two whole time Members to be appointed by the appropriate Government.
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:
(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.
-(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,-
(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.
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.
(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,-
(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 specified under clause (d) or clause (e) of sub-section (1) except by an order made by the appropriate Government after an inquiry made by a Judge of the High Court in
(1) The Chairperson or a Member, ceasing to hold office as such, shall not-
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, 2013[18 of 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 transaction or negotiation or a case to which the Authority is a party and with respect to which the Chairp
(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.
(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 as expeditiously as possible and the Authority shall dispose of the same within a period of sixty days from the
No act or proceeding of the Authority shall be invalid merely by reason of-
(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.
(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 case may be.
(2) The form, manner and fees for filing complaint under sub-section (1) shall be such as may be specified by regulations.
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,-
(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 commission 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;
(e) measures to encourage construction of environmentally sustainable and affordable housing, promoting sta
(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.
The functions of the Authority shall include-
(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 therefore, for access to the general public;
(d) to maintain a database, on its website, for public viewing, and enter the names and photographs of real estate agents who have applied and registered under this Act, with such
(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 therefore 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, 1908[5 of 1908] while trying a suit, in respect of the following matters, namely:-
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.
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.
(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-
(b) has effect of market power of monopoly situation being abused for affecting interest of allottees adversely, then the Authority, may suo motu, make reference in respect of such issue to t
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to promote transparency, accountability, and efficiency in the real estate sector. It aims to protect the interests of consumers and ensure the timely delivery of projects by real estate developers. Section 38 specifically outlines the powers of the Real Estate Regulatory Authority (Authority) to impose penalties and interest for contraventions of obligations under the Act.
Section 38 of RERA grants the Authority the power to impose penalties or interest for any contraventions of obligations imposed on promoters, allottees, and real estate agents under the Act or its associated rules and regulations. It emphasizes adherence to the principles of natural justice in its proceedings.
Section 38 encompasses a wide range of obligations that may be violated by promoters, allottees, or real estate agents. It allows the Authority to take action against any party that fails to comply with the provisions of the Act, thereby ensuring accountability in the real estate sector.
While Section 38 itself does not specify the exact nature of punishments, it empowers the Authority to impose penalties or interest. Other sections of the Act may provide for specific punishments, including fines or imprisonment for severe violations.
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 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.
(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 regulations 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.
(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 rotation, and any other Central Government department as notified.
(4
(1) The functions of the Central Advisory Council shall be to advise and recommend the Central Government,-
(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).
(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:
Section 43 of the RERA Act, 2016, deals with the establishment and functioning of the Real Estate Appellate Tribunal (REAT), the appellate remedy available to aggrieved parties, and the procedural requirements, notably the pre-deposit condition for appeals by promoters and other stakeholders. It aims to create a specialized forum for speedy and effective resolution of disputes related to real estate projects, ensuring protection of consumer rights and promoting transparency in the sector.
Section 43 of the RERA Act, 2016, establishes a robust mechanism for appeals, emphasizing timely establishment, procedural compliance, and protection of consumer interests. Judicial interpretations have consistently upheld the constitutionality of pre-deposit requirements, the mandatory composition of the Tribunal, and the retrospective applicability of the Act to ongoing projects. Challenges to procedural irregularities or constitutional validity are permissible, but the legislative intent remains clear in promoting a transparent, speedy, and effective dispute resolution framework in the real estate sector.
Note: All references are based on the provided sources and judicial pronouncements therein.
(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 appeal under sub-section (1), the Appellate Tribunal may after giving the parties an opportunity of being heard, p
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.
(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.
(1) A person shall not be qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless he,-
(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, public affairs or administration and possesses experience of at least twenty years in the field or who ha
(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 prejudicially his functions as such member.
(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:-
(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.
-(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-
(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 or Judicial member or Technical or Administrative Member shall not be removed from his office except by an order made by the appropriate Government after an inquiry made
-(1) The Chairperson or Judicial Member or Technical or Administrative Member, ceasing to hold office as such shall not:-
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, 2013[18 of 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 transaction or negotiation or a case to which the Authority is
(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.
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.
(1) The Appellate Tribunal shall not be bound by the procedure laid down by the. Code of Civil Procedure, 1908[5 of 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, 1872[1 of 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 5 of 1908. Procedure, 1908 in respect of the following matters, namely:-
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavi
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.
No act or proceeding of the Appellate Tribunal shall be invalid merely by reason of-
(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.
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.
(a) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949[38 of 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 Secretaries Act, 1980[56 of 1980] or any other law for the time being in force and who has obtained a certificat
(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.
(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, 1908[5 of 1908]:
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 parties.
(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.
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.
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.
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.
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.
If any promoter, 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 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.
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.
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.
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.
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.
(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, or is attributable to, any neglect on the part of any director, manager, secretary or
Notwithstanding anything contained in the Code of Criminal Procedure, 1973[2 of 1974.], 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.
(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, 1986[68 of 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 before it and file an application before 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:-
(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.
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.
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.
(1) The appropriate Government shall constitute a fund to be called the 'Real Estate Regulatory Fund' and there shall be credited thereto,-
(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-
(b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act.
(3) The Fund shall be administered by a committee of such Members of the
(1) All sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in the Union territories, 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.
(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 connection with the audit of Government accounts and, in particular shall have the right to
(1) The Authority shall prepare once in every year, in such form and at such time as may be prescribed by the appropriate Government,-
(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.
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.
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 79 of this Act specifically addresses the jurisdictional limitations of civil courts concerning matters that fall under the purview of the Real Estate Regulatory Authority (RERA) and related adjudicating bodies.
Section 79 establishes a clear bar on the jurisdiction of civil courts, stating that no civil court shall entertain any suit or proceeding regarding matters that the Authority, adjudicating officer, or Appellate Tribunal is empowered to determine under the Act. Furthermore, it prohibits any injunctions from being granted by any court concerning actions taken under the powers conferred by the Act.
The scope of Section 79 is broad, encompassing all disputes related to real estate transactions that fall within the regulatory framework established by RERA. This includes issues related to project delays, non-compliance by promoters, and disputes between allottees and developers.
While Section 79 itself does not prescribe specific punishments, it establishes a framework where non-compliance with the orders of the Authority or adjudicating officers can lead to penalties as outlined in other sections of the Act.
This commentary highlights the critical aspects of Section 79 of the Real Estate (Regulation and Development) Act, 2016, emphasizing its role in shaping the jurisdictional landscape of real estate disputes in India.
(1) No court shall take cognizance of any offence punishable under this Act or 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.
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.
(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 todo, the appropriate Government may, by notification, supersede the Authority for such period, not exceeding six months, as may be specified in the notification and appoint a person or persons as the President or
-(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 Government may, from time to time, require.
(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:-
(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;
(d) the validity of the period of registration and the manner and fee for renewal under sub-section (6) of section 9;
(e)
(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:-
(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 along with specifications, approved by the competent authority, for display under clause (a) of sub-section (3) of section 11;
(e) pr
(1) Every rule made by the Central Government, every regulation made by the Authority under the Union territory 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, however, that any such modification or annulmen
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.].
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.
"Non-derogation Principle" - Section 88 states that the provisions of RERA are in addition to and not in derogation of any other law for the time being in force, preserving applicability of other statutes alongside RERA. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta], [Santhosh T. N. , S/o. T. K. Narayanan VS Permanent Lok Adalath, Rep. By Its Secretary, Ernakulam]
"Text and meaning" - The textual formula in Section 88 confirms that existing laws continue to operate and are not displaced by RERA, reinforcing a cooperative statutory framework rather than an exclusive regime. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta]
"Essential ingredient: coexistence" - The clause is designed to ensure RERA works in tandem with other legal regimes (e.g., arbitration, consumer protection, company/IBC laws), not to nullify them. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta], [M3M India Pvt. Ltd. VS Dinesh Sharma], [Sanjay Ghiya VS Union Of India]
"Scope implication" - Section 88 contemplates interaction with multiple laws governing real estate, including arbitration, consumer protection, and insolvency regimes, without a blanket override. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta], [M3M India Pvt. Ltd. VS Dinesh Sharma], [Sanjay Ghiya VS Union Of India]
"Concurrent remedies principle" - Supreme Court guidance and later jurisprudence recognize concurrent remedies under RERA with CPA and IBC, so homebuyers can pursue multiple avenues for relief. [M3M India Pvt. Ltd. VS Dinesh Sharma], [Sanjay Ghiya VS Union Of India]
"Supremacy in conflict" - While Section 88 is non-derogatory, Section 89 provides that RERA prevails over any inconsistent law, creating a reigning position where conflicts arise. This supports a harmonious but ultimately preeminent statutory overlay. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta], [Sanjay Ghiya VS Union Of India]
"Arbitration Act interaction" - Arbitration remains applicable where valid; RERA does not render arbitration invalid, and courts may refer disputes to arbitration unless the underlying contract is invalid. This reflects harmonious coexistence of arbitration and RERA. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta]
"Interplay with IBC" - The Supreme Court and subsequent amendments treat allottees as financial creditors under IBC, while RERA remedies remain available in addition to IBC processes; the Code can prevail in genuine conflicts, with RERA remedies described as parallel/additional. [Sanjay Ghiya VS Union Of India], [Pioneer Urban Land and Infrastructure Limited VS Union of India]
"Interplay with CPA (Consumer Protection Act)" - The CPA remedies remain concurrent with RERA remedies; homebuyers may pursue CPA relief alongside RERA actions for real estate disputes. [M3M India Pvt. Ltd. VS Dinesh Sharma]
"Kerala Lok Adalat context" - In Kerala, the Lok Adalat/permanent housing and real estate service framework remains available; RERA does not oust the jurisdiction of Permanent Lok Adalat in housing/real estate service matters. [Santhosh T. N. , S/o. T. K. Narayanan VS Permanent Lok Adalath, Rep. By Its Secretary, Ernakulam]
"Penalty regime under RERA not tethered to Section 88" - Section 88 does not create penalties; offences/penalties arise under separate sections (e.g., Sections 59-69), reinforcing that 88 is a structural/scope provision, not a punitive provision. [Subashini Thulasiram VS SPR & RG Constructions Pvt. Ltd. ]
"Definition of 'other laws' in practice" - The phrase contemplates application alongside laws like the Arbitration Act, the Consumer Protection Act, and the Insolvency Code, rather than excluding them. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta], [Army Welfare Housing Organisation South Hutments, New Delhi VS Col. R. Ganesan], [M3M India Pvt. Ltd. VS Dinesh Sharma]
"Retroactivity and Section 88" - Section 88 is analyzed in tandem with retroactivity debates (e.g., ongoing projects, completion certificates) to ensure that RERA operates in a manner compatible with earlier rights, but its non-derogation aim remains intact. [Pioneer Urban Land and Infrastructure Limited VS Union of India], [Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. ], [Graceland Foundation VS Kerala Real Estate Regulatory Authority]
"Notion of 'not in derogation' vs 'notwithstanding' in law" - The not-in-derogation language is complemented by occasional non-obstante readings in related contexts (IBC/RERA harmonization) to resolve clashes, with the overriding concept that remedies under RERA are additional unless a conflict triggers Section 89. [Sanjay Ghiya VS Union Of India], [Pioneer Urban Land and Infrastructure Limited VS Union of India]
"Practical litigation posture for parties" - Litigants should pursue RERA remedies as part of a broader strategy, leveraging concurrent rights under CPA and IBC where appropriate, rather than treating Section 88 as a shield to avoid other remedies. [M3M India Pvt. Ltd. VS Dinesh Sharma], [Sanjay Ghiya VS Union Of India]
"Judicial trend: harmonious construction" - Courts routinely emphasize a harmonious construction of RERA with other laws, ensuring that there is no irrational displacement of existing rights while enabling accelerated, consumer-friendly redressal under RERA. [Sanjay Ghiya VS Union Of India], [Unnikrishnan Chandran Pillai VS Tata Reality Infrastructure Ltd. ], [Cordial Foundation Pvt. Ltd. , Represented By Its Executive Director N. Vijayan Unnithan VS Purushothama Bharathi, S/o. Late Mathew M Kuzhiveli]
"Conclusion for Section 88" - Section 88 is a structural provision that guarantees co-existence with other laws, enabling concurrent and complementary relief mechanisms under RERA while reserving supremacy for RERA where inconsistencies arise under Section 89; the overall effect is a flexible, consumer-protective yet jurisdictionally integrated framework. [Bihar Home Developers And Builders, Through Its Authorised And Registered Partner Rajiv Ranjan Kumar, Late Sh Sundeshwar Roy VS Narendra Prasad Gupta], [Sanjay Ghiya VS Union Of India], [M3M India Pvt. Ltd. VS Dinesh Sharma], [Santhosh T. N. , S/o. T. K. Narayanan VS Permanent Lok Adalath, Rep. By Its Secretary, Ernakulam]
The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
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.
(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:
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Section 91 of the Real Estate (Regulation and Development) Act, 2016 (RERA) empowers the Central Government to address and resolve difficulties that may arise in the implementation of the Act. It functions as a procedural safeguard to ensure the smooth functioning of the regulatory framework established by RERA.
Section 91 authorizes the Central Government to make, by order published in the Official Gazette, provisions necessary for removing any difficulties in giving effect to the provisions of the Act. It also mandates that any such order be laid before each House of Parliament. The section emphasizes that the powers are to be exercised to ensure the effective implementation of the Act, provided the orders are not inconsistent with the Act.
The scope is confined to procedural and administrative issues that may hinder the enforcement of the Act. It does not permit making substantive changes to the rights or obligations of parties under the Act. This section acts as a temporary and remedial measure to facilitate smooth enforcement.
Section 91 itself does not prescribe any punishment or penalty. Its function is administrative, aimed at enabling the effective implementation of the Act through executive orders.
Note: The analysis is based on the provided sources and standard legal interpretations of Section 91 of RERA.
The Maharashtra Housing (Regulation and Development) Act, 2012[Repeal] is hereby repealed.
Section 92 of the Real Estate (Regulation and Development) Act, 2016 (RERA) primarily deals with the repeal of the Maharashtra Housing (Regulation and Development) Act, 2012. It signifies the transition from the older state-specific legislation to the comprehensive national framework established by RERA, aiming to streamline and regulate the real estate sector uniformly across India.
Section 92 explicitly repeals the Maharashtra Housing (Regulation and Development) Act, 2012, thereby extinguishing its provisions and replacing them with the provisions of RERA. It ensures that all ongoing or existing projects under the repealed Act are governed under the new regulatory regime of RERA, fostering greater transparency and accountability.
Section 92's scope is confined to the legal domain of repealing a specific state Act (Maharashtra Housing Act, 2012) and ensuring its replacement by RERA. It impacts all projects, authorities, and stakeholders previously governed by the repealed Act, mandating adherence to RERA's provisions henceforth. The section also signifies the centralization of regulatory authority and harmonization of real estate laws nationwide.
Section 92 itself does not prescribe any punishment; instead, it functions as a legislative repeal. Punishments for violations of RERA are detailed elsewhere in the Act, such as imprisonment up to 3 years or fines up to 10% of the project cost for non-compliance, false information, or breach of statutory obligations.
Repetition and Transition - Section 92 repeals the Maharashtra Housing Act, 2012, facilitating a seamless transition to RERA for regulation of real estate projects in Maharashtra. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Unified Regulation - The repeal under Section 92 promotes uniformity in real estate regulation across states, aligning Maharashtra with the national framework of RERA. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Legislative Intent - The section underscores the legislative intent to replace fragmented state laws with a comprehensive, central legislation to enhance transparency and accountability. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Legal Certainty - Repeal ensures that ongoing projects under the old Act are now governed by RERA, providing legal certainty to developers and buyers. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Impact on Stakeholders - The repeal affects promoters, buyers, and authorities previously under the Maharashtra Act, now subject to RERA’s provisions. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Superseding State Laws - Section 22 of RERA gives overriding effect to the Act over any inconsistent law, including the repealed Maharashtra Act. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Transition of Projects - The section ensures that projects initiated under the repealed Act are brought under RERA’s regulatory ambit, promoting transparency. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Legal Hierarchy - The repeal signifies the hierarchical supremacy of RERA over state laws, emphasizing the importance of centralized regulation. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
No Punitive Provisions in Section 92 - As a repealing section, it does not prescribe penalties; violations are penalized under RERA’s provisions elsewhere. -
Policy Shift - Section 92 reflects a policy shift towards a more regulated and transparent real estate sector, reducing malpractices. -
Legal Continuity - The section ensures legal continuity, preventing legal vacuums or conflicts arising from the repeal of the previous legislation. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Legal Framework Enhancement - The repeal enhances the legal framework, making it more robust, transparent, and investor-friendly. -
Implementation of RERA - The repeal under Section 92 is a crucial step in implementing RERA’s objectives of accountability and transparency. -
Judicial Perspective - Courts have recognized that repealing older laws via Section 92 aids in consolidating and streamlining real estate regulation. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Legal Certainty for Ongoing Projects - The section provides legal certainty for projects under the old Act, now governed by RERA’s provisions. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Harmonization of Laws - It signifies the harmonization of state and central laws, reducing legal discrepancies in the real estate sector. - [FERANI HOTELS PVT. LTD. VS STATE INFORMATION COMMISSIONER GREATER MUMBAI]
Promotion of Fair Practices - The overarching goal is to promote fair practices, protect consumers, and ensure timely project completion. -
In summary, Section 92 of RERA marks a pivotal legislative step in consolidating and modernizing real estate regulation in India by repealing the Maharashtra Housing Act, 2012, and ensuring all projects and stakeholders are brought under the new, comprehensive framework of RERA, thereby fostering transparency, accountability, and consumer protection.
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