Understanding the Establishment and Incorporation of the Rajasthan Real Estate Regulatory Authority (RERA)
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to regulate the real estate sector, protect homebuyers, and bring transparency and accountability. Section 20 of the Act lays the foundation for establishing a Real Estate Regulatory Authority (RERA) in each state, including Rajasthan. Here’s how it applies in the state:
| Provision | Details |
| Establishment of Real Estate Regulatory Authority | The appropriate Government must establish the Authority within one year of the Act coming into force. |
| Option for Single Authority | Two or more States/Union Territories may establish a single Authority if deemed fit. |
| Option for Multiple Authorities | A State/Union Territory may establish more than one Authority if deemed necessary. |
| Interim Designation | Until the Authority is established, the Government may designate an existing Regulatory Authority or an officer, preferably the Secretary of the Housing Department, as the interim Authority. |
| Transfer of Pending Matters | After the establishment of the Authority, all pending applications, complaints, or cases with the designated Authority will be transferred to the newly established Authority and continued from their current stage. |
| Nature of the Authority | The Authority is a body corporate with perpetual succession and a common seal. |
| Powers of the Authority | Can acquire, hold, and dispose of property (movable and immovable), enter into contracts, and has the right to sue or be sued. |
Formation of RERA in Rajasthan
Under Section 20(1), the Rajasthan Government is required to set up a Real Estate Regulatory Authority within one year of the Act coming into force. This authority is responsible for regulating the real estate sector, ensuring compliance with RERA, and addressing grievances of homebuyers and builders.
Flexible Options for Establishing RERA
The Act provides flexibility in how the regulatory authority is set up:
Single or Joint Authority:
- Rajasthan may establish a dedicated Rajasthan RERA for the state.
- Alternatively, the Rajasthan Government can collaborate with neighboring states or Union Territories to form a joint authority, pooling resources for efficiency.
Multiple Authorities (if needed):
- For better regional management, the state can create more than one authority within Rajasthan. This could help address specific local concerns in cities like Jaipur, Udaipur, or Jodhpur.
Temporary Provisions
Until the establishment of a permanent RERA authority, the Rajasthan Government can designate an existing regulatory authority or a senior officer (preferably the Housing Department Secretary) to act as the interim RERA. This ensures that regulatory functions, such as registration of projects and grievance redressal, continue without disruption.
Transition to Permanent RERA
Once the permanent authority is established, any ongoing applications, complaints, or cases under the interim authority will be seamlessly transferred. These matters will continue to be handled from their current stage, ensuring no delay or restart for stakeholders.
Corporate Status of RERA
Section 20(2) establishes RERA as a body corporate with the following powers:
- Perpetual Succession: RERA Rajasthan continues to exist regardless of changes in government or leadership.
- Common Seal: A symbol of its identity and authority.
- Property Management: It can acquire, hold, or dispose of movable and immovable property as required for its functioning.
- Legal Identity: RERA can sue or be sued under its name, reinforcing its status as an independent legal entity.
Significance for Rajasthan’s Real Estate Sector
RERA Rajasthan plays a critical role in bringing order and trust to the state’s real estate market. By ensuring compliance with RERA provisions, the authority protects buyers from malpractices while providing a fair platform for developers to resolve disputes.
Conclusion
Section 20 of RERA sets the foundation for establishing a robust regulatory mechanism in Rajasthan. Whether through a single authority, a joint body, or temporary arrangements, the state’s commitment to implementing RERA reflects its aim to create a transparent and fair real estate environment. With its corporate status and well-defined powers, RERA Rajasthan stands as a trusted mediator in the real estate sector, benefiting all stakeholders.
Legal Text of Section 20 of RERA Act
(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 Secretary of the department dealing with Housing, as the Regulatory Authority for the purposes under this Act: Provided also that after the establishment of the Regulatory Authority, all applications, complaints or cases pending with the Regulatory Authority designated, shall stand transferred to the Regulatory Authority so established and shall be heard from the stage such applications, complaints or cases are transferred.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with the power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.