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CS Executive · Economic, Commercial and Intellectual Property Laws · Real Estate Regulation and Development Law

A State Government has notified that it will set up a Real Estate Regulatory Authority but the Authority is not yet established. Under the RERA Act, 2016, what must the appropriate Government do in the meantime?

Until the Real Estate Regulatory Authority is established, the appropriate Government must by order designate any Regulatory Authority or any officer, preferably the Secretary of the Housing department, to act as the Regulatory Authority. Projects and complaints are not suspended or left unregulated in the interim.

  1. ASuspend the registration of all real estate projects until the Authority is established
  2. BDesignate by order any Regulatory Authority or any officer, preferably the Secretary of the Housing department, as the Regulatory AuthorityCorrect
  3. CTransfer all complaints to the Central Advisory Council
  4. DAllow promoters to sell units without registration until establishment

Explanation

Section 20 provides that until a Regulatory Authority is established, the appropriate Government shall by order designate any Regulatory Authority or any officer, preferably the Secretary of the department dealing with Housing. Suspending registration or permitting unregistered sales has no basis in the provision. The Central Advisory Council is advisory and does not hear complaints.

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