Train RERA officials on provisions, Bihar REAT tells state government, ET RealEstate

June 24, 2023

NEW DELHI: In a wake-up call for real estate regulators, the Real Estate Appellate Tribunal (Reat) of Bihar has urged the state government to give “training” to the members of its regulatory authority, Rera, for proper understanding of the laws relating to the sector.

The appellate tribunal has said that it was compelled to pass the order in view of “improper functioning of the authority”, which registered a commercial-cum-residential project without checking the authenticated documents.

In its order passed last week, the Bihar Reat said, “The Tribunal finds that members of the authority are required to be given training for proper understanding of Real Estate (Regulation and Development) Act, 2016, Bihar Apartment Ownership Act, 2006 and Bihar Municipal Act, 2007 and building bye-laws, so the government may arrange desired training in Bihar Judicial Academy with the permission of appropriate authority.”

The Reat passed the order while hearing an appeal filed by one Gopal Prasad Singh of Danapur in Bihar against M/S Jascon Enterbuild Ltd and the state Rera. Singh had entered into an agreement with the builder for construction of a multi-storied commercial and residential complex in August 2011, with share of constructed area among them in the ratio of 49% and 51% respectively.

The building map plan was sanctioned in May 2012 by the local authority, but it was not revalidated on lapse and no application for revalidation was filed by the promoter within the mandatory period prior to the expiry of three years for completing construction of the project as granted by the local authority.

The Tribunal observed a “disturbing aspect” that the Rera had done “grave error” in registering the project in July 2019 and granting registration certificate without furnishing mandatory or essential documents for registration of the project in accordance with the central law. Interestingly, even the counter affidavit filed by Rera before Reat did not contain a word on how the project was registered without a valid map plan in existence and also how it granted extension of registration.

The Tribunal said, “In the present case, registration was done without application of mind in a mechanical way. It appears that the authority has not understood holistically the objectives of the Act and, in particular, Section-4 of the Act which requires submission of all mandatory documents for getting the project registered by the Authority which includes authenticated copy of approvals and commencement certificate from the competent authority.” The Reat said it is obvious there was no valid sanctioned plan in existence at the time of registration of the project.

“This order has been passed by the Bihar Reat but is equally pertinent for all regulatory authorities across India. The order has exposed how Bihar Rera has made the whole registration process just a mechanical exercise without going into any kind of checking, leaving to our imagination how they must be discharging their other responsibilities under the Act,” said Abhay Upadhyay, a member of the Central Advisory Council for Rera.

  • Published On Jun 24, 2023 at 09:29 AM IST

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