Bihar REAT rules RERA can’t appoint officers on their own like ‘private limited company’, ET RealEstate

August 26, 2023

NEW DELHI: Delivering a reality check about the powers of the Bihar’s real estate regulatory authority, the state Real Estate Appellate Tribunal (BREAT) has said the authority or RERA can’t appoint “officers and employees” on its own like a “private limited company”. It said all such appointments can be made only by the state government in consultation with the authority.

The order may work as a precedent to act against appointments made independently by RERAs across the country.

The two-member bench of BREAT passed this order while hearing an appeal by a private developer against the execution order issued by a senior legal consultant to give possession of an apartment to one Asha Verma. The RERA bench comprising its chairman and one of the members (Nupur Banerjee) had disposed of Verma’s complaint in September 2022 directing the builder to hand over possession of the landowner’s share of flats within 30 days of passing the order. There was an agreement between the land owner and the builder and she was supposed to get eight apartments as per the agreement.

The builder handed over only seven apartments. So, Verma approached the RERA for execution of order. Though the execution matter was imitated by RERA member Nupur Banerjee, during pendency, the case was transferred to Ved Prakash, senior legal consultant of the authority. Prakash passed the order, which was challenged by the builder.

The builder’s counsel argued that the senior legal consultant had no jurisdiction to deal with judicial proceedings. But the RERA counsel argued that the execution matter was transferred to the senior legal consultant since the authority has the power to delegate to any member, officer or any other person relating to the execution matter pending before the authority.

But the BREAT did not accept the argument and observed that no officer or employees of the RERA will be appointed by the authority on its own and only the state government has jurisdiction to appoint such officer and employee in consultation with the authority. It observed that the appointment of the senior legal counsel was “illegal”.

The BREAT directed the registrar to send a copy of the order to the principal secretary of urban development department for taking appropriate corrective action to ensure illegal appointment be set aside. On RERA’s power, it said, “The authority cannot make any such appointment on its own as it is not a private limited company rather an instrumentality of the state, a regulatory body created by Real Estate (Regulation and Development) Act, 2016 passed by the Parliament. This is matter of serious concern and no such illegal appointees can be allowed to function in such manner discharging quasi judicial or judicial function, for example conducting execution proceeding as in this case.”

  • Published On Aug 18, 2023 at 02:00 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment