Chapter V THE REAL ESTATE REGULATORY AUTHORITY

Establishment of Real Estate Regulatory Authority.—

1. (1) The Government shall, within a period of six months 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.
2. (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.
3. (3) The Headquarters of the Regulatory Authority shall be at Thiruvananthapuram.

Composition of Authority.—The Authority shall consist of a Chairperson and not less than two whole-time Members to be appointed by the Government, from among persons having special knowledge or professional experience in the field of Public Administration, Urban Development, Finance, Law or Management.

Qualifications of Chairperson and Members of Authority.—The Chairperson and other Members of the Authority shall be appointed by the Government, from among persons having adequate knowledge and professional experience of at least twenty years in the case of the Chairperson and fifteen years in the case of the Members in Urban development, housing, real estate development, infrastructure, economics, planning, law, commerce, accountancy, industry, management, social service, public affairs or administration: Provided that a person who is, or has been, in the service of the Government shall not be appointed as a Chairperson unless such person is holding or has held the post of the Head of the Department in Government or any equivalent post.

Term of the office of Chairperson and Members.—

1. (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.
2. (2) Before appointing any person as a Chairperson or Member, the 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.

Salary and allowances payable to Chairperson and Members.-(1) The salary and allowances payable to, and the other terms and conditions of service of the Chairperson and other Members shall be such as may be prescribed.

1. (2) Notwithstanding anything contained in sub-sections (1) and (2) of section 23, the Chairperson or a Member, as the case may be, may,-
   • (a) relinquish his office by giving, in writing, to the Government, notice of not less than three months; or
   • (b) be removed from his office in accordance with the provisions of section 26 of this Act.
2. (3) Any vacancy in the office of the Chairperson or any other Member shall be filled-up within a period of six months from the date on which such vacancy occurs.

Administrative powers of the Chairperson.-The Chairperson shall have powers of general superintendence in the conduct of the affairs of the 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.

Removal of Chairperson and Members.-(1) The Government may, by order, remove from office, the Chairperson or other Members, if the Chairperson or such other member, as the case may be,-

1. (a) has been adjudged as an insolvent; or
2. (b) has been convicted of an offence, involving moral turpitude; or
3. (c) has been physically or mentally, incapable of acting as a Member; or
4. (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or
5. (e) has so abused his position as to render his continuance in office prejudicial to public interest.

1. (2) No such Chairperson or Member shall be removed from his office under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.
2. (3) The Chairperson or a Member may resign his office at any time by sending a resignation letter addressed to the Government with a notice of not less than three months.

Restriction on employment after cessation of office.-The Chairperson or a Member, ceasing to hold office as such, shall not,-

1. (a) accept any employment in, or connected with, the management or administration of, any person or organization which has been associated with any work under this Act, from the date on which he ceases to hold office: Provided that nothing contained in this section shall apply to any employment under the Government or a Local Self Government Institution or in any statutory authority or any corporation established by or under any Central or State Act or a Government Company, as defined in section 45 of the Companies Act, 2013 (Central Act 8 of 2013);
2. (b) act, for or on behalf of any person or organization 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 Chairperson or such Member had, before cessation of office, acted for, or provided advice to, the Authority;
3. (c) enter into a contract of service with, or accept an appointment to a board of directors of, or accept an offer of employment with, an entity with which he had direct and significant official dealings during his term of office as such.

Officers and other employees of Authority.-(1) The 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.

1. (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.

Meetings of Authority.-(1) The Authority shall meet at such places and times, and shall follow such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings), as may be specified, by the regulations made by the Authority.

1. (2) If the Chairperson is for any reason, unable to attend a meeting of the Authority, any other Member chosen by the Members present among themselves at the meeting, shall preside at the meeting.
2. (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:

Vacancies etc. not to invalidate proceedings of Authority Vacancies etc. not to invalidate proceedings of Authority.-No act or proceedings of the Authority shall be invalid merely by reason of:-

1. (a) any vacancy in, or any defect in the constitution of, the Authority; or
2. (b) any defect in the appointment of a person acting as a Member of the Authority; or
3. (c) any irregularity in the procedure of the Authority not affecting the merits of the case.

Functions of the Authority.-(1) 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 Government or the competent authority, as the case may be, on,-

1. (a) protection of interest of the allottees and promoter;
2. (b) measures to improve the processes and procedures for clearance and sanction of plans and development of projects;
3. (c) measures to encourage construction of environmentally sustainable and affordable housing, promote standardisation, including grading and use of appropriate construction materials, fixtures, fittings and construction techniques;
4. (d) measures to facilitate amicable conciliation of disputes between the promoters and the allottees through dispute settlement forums;
5. (e) any other issue that the Authority may think necessary for the promotion of the real estate sector.

1. (2) The Authority shall, inter alia, have the following functions, namely:-
   • (a) to render advice to the Government in matters relating to the development of real estate sector;
   • (b) to publish and maintain a website of records 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, and enter the names of promoters as defaulters including the project details, registration for which has been revoked or have been penalised under this Act, with reasons therefor, for access to the general public;
   • (d) to maintain a database, on its website, and enter the names of real estate agents who have applied and registered under this Act, with such details, as may be prescribed, including those whose registration has been rejected or revoked;
   • (e) to fix through regulations for each areas under its jurisdiction the standard fees, to be levied on the allottees by the promoter or the association, as the case may be;
   • (f) to ensure compliance of the obligations cast upon the promoters, the allottees and the real estate agents under this Act and the rules and regulations made thereunder;
   • (g) to ensure compliance of the regulations or orders or directions made in exercise of its powers under this Act;
   • (h) to perform such other functions as may be entrusted to the Authority by the Government and necessary to carry out the provisions of this Act.

Power of Authority to adjudicate compensation.-(1) The Authority shall have the power to adjudicate compensation payable under sections 12, 14 and 17 by holding an inquiry, in the prescribed manner, after giving any person concerned a reasonable opportunity of being heard.

1. (2) The application for adjudging compensation under sub-section (1) shall be dealt with by the Authority as expeditiously as possible and dispose of the same within a period of ninety days from the date of receipt of such application: Provided that where any such application could not be disposed of within the said period of ninety days; the Authority shall record its reasons in writing for not disposing of the application within that period.
2. (3) While holding an inquiry, the Authority shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the Authority, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, it is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), it may direct to pay such compensation or interest, as the case may be, as it thinks fit, in accordance with the provisions of any of those sections.
3. (4) While adjudging the quantum of compensation or interest, as the case may be, under sections 12, 14 and 17 the Authority shall have due regard to the following factors, namely:-
   • (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
   • (b) the amount of loss caused as a result of the default;
   • (c) the repetitive nature of the default.

Powers of Authority to call for information and conduct investigations.-(1) Where the Authority considers it expedient to do so, on a complaint relating to this Act or the rules or regulations made thereunder, it may, by order in writing and recording reasons therefor call upon any promoter or allottee or real estate agent, as the case may be, at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require and appoint one or more persons to make an inquiry in relation to the affairs of any promoter or allottee or the real estate agent, as the case may be.

1. (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 (Central Act 5 of 1908) while trying a suit, in respect of the following matters, namely:-
   • (i) the discovery and production of books of account and other documents, at such place and at such time as may be specified by the Authority;
   • (ii) summoning and enforcing the attendance of persons and examining them on oath;
   • (iii) issuing commissions for the examination of witnesses or documents;
   • (iv) any other matter which may be prescribed.

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

Powers of Authority.-(1) The Authority shall have the power 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.

1. (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.

Recovery of interest or penalty or compensation.-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 under this Act, it shall be recoverable from such promoter or allottee or real estate agent, as if it is an arrear of revenue due on land.