The Real Estate Appellate Tribunal (Reat) of Bihar has issued a wake-up call to real estate regulators, urging the state government to provide training to the members of its regulatory authority, Rera. The tribunal emphasized the need for a proper understanding of the laws pertaining to the real estate sector. This call for action comes in response to the "improper functioning of the authority," which approved a commercial-cum-residential project without conducting thorough checks on the authenticity of the submitted documents.
In a recent order, the Real Estate Appellate Tribunal (Reat) of Bihar emphasized the necessity for training the members of the regulatory authority, Rera, to ensure a comprehensive understanding of key legislations such as the Real Estate (Regulation and Development) Act, 2016, Bihar Apartment Ownership Act, 2006, Bihar Municipal Act, 2007, and building bye-laws. The tribunal suggested that the government should facilitate this training by seeking permission from the appropriate authority to organize it at the Bihar Judicial Academy. This order reflects the tribunal's concern regarding the need for improved knowledge and expertise among regulatory authority members to enhance the proper functioning of the real estate sector.
The order was issued by the court during the appeal hearing filed by Gopal Prasad Singh from Danapur, Bihar. The appeal was made against M/S Jascon Enterbuild Ltd and the state Rera. Singh had previously entered into an agreement with the builder in August 2011 for the construction of a multi-storied commercial and residential complex. As per the agreement, the constructed area was to be divided between them in the ratio of 49% and 51% respectively.
Although the building map plan received sanction from the local authority in May 2012, it was not revalidated when it lapsed. Additionally, the promoter failed to submit an application for revalidation within the mandatory period before the three-year expiration for completing the construction of the project, as granted by the local authority.
The Tribunal highlighted a concerning aspect where the regulatory authority, Rera, made a grave error in registering the project in July 2019. It granted a registration certificate without providing the mandatory or essential documents required for project registration in accordance with the central law. Strikingly, even the counter affidavit filed by Rera before Reat failed to address how the project was registered without a valid map plan and how the extension of registration was granted. This oversight raises significant questions about the registration process and the authority's decision-making.
The Tribunal strongly expressed that the registration of the project was conducted in a mechanical manner without proper consideration. It was evident that the authority failed to grasp the overall objectives of the Act, particularly Section-4, which mandates the submission of all essential documents, including authenticated copies of approvals and commencement certificates from the competent authority, for project registration. The Reat clearly stated that there was no valid sanctioned plan in existence during the project's registration, highlighting a significant oversight.
Abhay Upadhyay, a member of the Central Advisory Council for Rera, commented that while this order was issued by the Bihar Reat, its implications extend to regulatory authorities across India. The order has revealed how Bihar Rera has transformed the registration process into a mere mechanical exercise, devoid of any thorough checks. This raises concerns about how the authority must be fulfilling its other responsibilities under the Act. Upadhyay's statement highlights the need for regulatory authorities nationwide to ensure diligent and comprehensive execution of their duties beyond just the registration process.
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