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Introduction: This article discusses in details the role, establishment, incorporation & powers of Real Estate Regulatory Authority under RERA (Real Estate Regulation and Development Act, 2016).

Establishment & Incorporation of Real Estate Regulatory Authority

Every State Govt. shall, within a period of 1 year from the date of coming in force of this Act, establish an Authority to be known as the Real Estate Regulatory Authority to exercise the powers conferred & perform the function assign to it by this Act.

The State/UT Govt. may also establish one or more Real Estate Regulatory Authority in the State or UT.

Until the establishment of RERA, the State Govt. shall designate any Regulatory Authority (like DDA, GDA, GNDA) 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 be a Body Corporate having name as aforesaid, having perpetual succession and common seal with power subject to the provisions of this Act to acquire, hold and dispose of property both movable or immovable, and contract, and shall by the said name sue or be sued.

Functions of Real Estate Regulatory Authority

1. To register and regulate real estate projects and real estate agents;

2. To publish and maintain a website of records for public viewing of all real estate projects for registration has been given including information provided in the application for which registration has granted;

3. To maintain a database on its website for public viewing and enter the names & photograph of promoters as defaulters including the project details, the registration of which has been revoked or penalized under the Act with the reasons therefore;

4. To maintain a database on its website for public viewing and enter the names & photograph of real estate agents who have applied and registered under this Act including those whose registration has been rejected or revoked;

5. To fix regulations for each area under its jurisdiction, the fees to be levied on the allottees or the promoters or the real estate agent;

6. To ensure the compliances of the obligations cast upon the promoters, the allottees and the real estate agents under this Act and rules and  regulation made there under;

7. To ensure the compliances of its regulations or orders or directions made in exercise of its powers given under this Act;

8. To perform such other functions as may be entrusted to the Authority by the Govt. to carry out the provisions of this Act.

Powers of Real Estate Regulatory Authority

1. To call for information and conduct investigations into the affairs of any Promoter or real estate agent or allottee and examination of their books of accounts, records and documents;

2. To have all the powers as are vested in the civil court under CPC, 1908 during examination of suit;

3. To issue interim orders during any inquiry to restrain any Promoter or real estate agent or allottee from carrying out such Act which are in contravention to the provisions of this Act;

4. To issue necessary directions from time to time  to any Promoter or real estate agent or allottee for the pupose of discharging its function under the provisions of this Act;

5. To impose penalty or interest on any Promoter or real estate agent or allottee for doing such Act which are in contravention to the provisions of this Act;

6. To refer any matter to Competition Commission of India which has the effect of market power of monopoly situation being abused against the interest of allottees.

7. To rectify/amend any of its order within 2 years for any mistake apparent from the record;

. To recover from any Promoter or real estate agent or allottee the amount of interest or penalty or compensation as land revenue, who fails to pay these amounts.

Functions of Real Estate Regulatory Authority for promotion of Real Estate Sector

In order to facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector, the Authority shall make recommendation to the Govt. on the below related areas:

1. Protection of the interest of allottees, promoter and real estate agent;

2. Creation of single window system for ensuring time bound project approvals and clearances for timely completion of the projects;

3. Creation of transparent and robust grievance redressal  system against acts, omission and commission of competent authorities and its officials;

4. Measures to encourage investments in real estate sector including measures to increase financial assistance for affordable housing segment;

5. Measures to encourage construction of environmentally sustainable and affordable housing, promoting standardization and use of appropriate construction materials, fixtures, fittings and construction techniques;

6. Measures to encourage grading of projects on various parameters of development including grading of promoters;

7. Measures to facilitate amicable resolution of disputes between promoters and allottees through disputes settlement forums set up  by the consumer or promoter associations;

8. Measures to facilitate digitization of land records and system towards conclusive property titles with title guarantee;

9. To render advice to the Govt. in the matters relating to the development of real estate sector;

10. Any other issue that the  Authority may think necessary for the promotion of real estate sector;

11. To give its opinion to the Govt. on any matter having possible effect on real estate sector, within 60 days of receipt of such reference from Govt.

Main Points for consideration

1. The applicant or appellant may either appear in person or authorize one or more practicing CAs, CSs, CMAs or Advocates or any of its officers to present his case before the Adjudicating Officer.

2. No civil court shall have jurisdiction to entertain any suit or proceedings in respect of any matter over which the Adjudicating officer, RERA Authority or RERA Appellate tribunal is empowered by or under this Act to decide the matter.

3. No injunction or stay shall be granted by any court or any other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

The author is a practicing CA and is registered Insolvency Professional. He can also be reached at cavinodchaurasia@gmail.com


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