Know Rera: Regulating the regulator
The Act ensures that checks and balances are in place for working of the state real estate regulatory authority
The state real estate regulatory authority set up under the Real Estate (Regulatory and Development) Act is at the centre of bringing transparency and accountability in the realty sector. The effectiveness of the Act depends on effectiveness and performance of the state authorities.
So, in order to ensure that the authority delivers on its legal mandate, the Act provides for a mechanism through which the working of the authority is monitored.
In case, it fails to work effectively or violates the Act or state rules, then the Act provides for the state government intervention and rectify the working.
FINANCIAL CONTROL OVER RERA
The state government may, under Section 74, can make to the authority, grants and loans of such sums of money as it may think fit for being utilised for the purposes of the Act.
The government has to constitute a fund to be called the ‘Real Estate Regulatory Fund' and there shall be credited thereto, all government grants received by the authority; the fees received under the Act; the interest accrued on the amounts.
The fund shall be applied for meeting— the salaries and allowances payable to the chairperson and other members, the adjudicating officer and the administrative expenses including the salaries and allowances payable to be officers and other employees of the authority and the appellate tribunal; the other expenses of the authority in connection with the discharge of its functions and for the purposes of the act.
The fund shall be administered by a committee of such members of the authority as may be determined by the chairperson. The committee appointed shall spend monies out of the Fund for carrying out the objects for which the Fund has been constituted, stipulates the act.
Under Section 77, the Authority has to prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts.
The accounts of the authority are to be audited by the comptroller and auditor general of India (CAG) at such intervals as may be specified by it.
The accounts of the authority, as certified by the CAG or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the appropriate government by the authority and the appropriate government shall cause the audit report to be laid, as soon as may be after it is received, before the parliament or, as the case may be, before the state Legislature or the union territory legislature.
REPORTING ALL ACTIVITIES
The authority has to prepare once in every year, a description of all the activities of the authority for the previous year; the annual accounts for the previous year; and the programmes of work for the coming year.
A copy of the report is to be laid before the parliament or, as the case may be, before the state legislature, mandates the act.
REMOVING MEMBER OR CHAIRPERSON
Under Section 26, the state government can remove from office the chairperson or other members, if the chairperson or such other member, as the case may be has been adjudged as an insolvent; or has been convicted of an offence, involving moral turpitude; or has become physically or mentally incapable of acting; or has acquired such financial or other interest as is likely to affect prejudicial his functions; or has so abused his position as to render his continuance in office prejudicial to the public interest.
Providing security of tenure and impartial working of the chairperson and members, they cannot be removed from their office except by an order made by the appropriate government after an inquiry made by a high court judge in which such chairperson or member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.
POWER OF APPROPRIATE GOVERNMENT TO SUPERSEDE AUTHORITY
If, at any time, the appropriate government is of the opinion that, that the auhority is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or if the authority has persistently defaulted in complying with any direction given by the government under the Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of the act and as a result of such default the financial position of the authority or the administration of the authority has suffered; or that circumstances exist which render it necessary in the public interest so to do, the appropriate Government may, by notification, supersede the uthority for such period, not exceeding six months, as may be specified in the notification and appoint a person or persons as the president or the governor, as the case may be, may direct to exercise powers and discharge functions under the act.
Upon the publication of a notification superseding the Authority, the chairperson and other members have to, as from the date of supersession, vacate their offices as such.
All the powers, functions and duties be exercised or discharged by or on behalf of the authority shall be exercised and discharged by the person or persons appointed by the government. All properties owned or controlled by the authority shall, until the it is reconstituted, vest in the appropriate government.
On or before the expiration of the period of supersession specified in the notification, the appropriate government shall reconstitute the authority by a fresh appointment of its chairperson and other members and in such case any person who had vacated his office shall not be deemed to be disqualified for reappointment.
POWERS OF GOVT TO ISSUE DIRECTIONS TO AUTHORITY
Under Section 83 of the act, the authority, in exercise of its powers and in performance of its functions, is bound by such directions on questions of policy, as the appropriate government may give in writing to it from time to time.
If any dispute arises between the government and the authority as to whether a question is or is not a question of policy, the decision of the government thereon shall be final, stipulates the act.
The authority has to furnish to the government such returns or other information with respect to its activities as the government may, from time to time, require.