High CourtsDivision Bench

Grj Distributors And Developers Private Limited @APPELLANT@Hash Union Of India

Rajasthan High Court · Decided on 31 July 2018 · Citation: (2018) 07 RAJ CK 0249

HON’BLE JUDGES
Munishwar Nath Bhandari, J · Dinesh Chandra Somani, J
ACTS & SECTIONS REFERRED
Real Estate (Regulation andDevelopment) Act, 2016 — Section 20, 21, 22, 43, 45, 46
CASE NUMBER
Civil Writs No. 14186, 14200, 14187, 14192, 14198, 14199, 13736 of 2018
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Judgment

28 paragraphs · 565 words

None appears on behalf of the State despite service. Shri Rajendra Prasad, learned Additional Advocate General is directed to put in appearance on

behalf of the department.

Heard on the stay application.

Learned counsel for petitioner-company submits that by these writ petitions, the Notifications, nominating the Real State Regulatory Authority and the

Real Estate Appellate Tribunal, have been challenged. It is in reference to Sections 20 to 22 and Sections 43 to 46 of the Real Estate (Regulation and

Development) Act, 2016 (in short “the Act of 2016â€​).

It is submitted that the Real Estate Regulatory Authority was required to be established within a period of one year from coming into force the Act of

2016 which was given effect since 1st May, 2016. It has not been constituted as yet. Under the proviso to Section 21 of the Act of 2016, the authority

was given to the State Government to designate any Regulatory Authority or an officer, preferably the Secretary of the department, to be Regulatory

Authority in absence of constitution of Real Estate Regulatory Authority. It has been done by the State but could not have been continued beyond

the period of one year.

The same is the position in regard to Real Estate Appellate Tribunal. The power has been given to Food Safety Appellate Tribunal headed by a

Retired District Judge. As per Section 45 of the Act of 2016, the Appellate Tribunal is to be headed either by a Sitting or Retired Judge of the High

Court thus even the Real Estate Appellate Tribunal has not been constituted as per Section 43 of the Act of 2016.

It is also stated that an order on the complaint of the nonpetitioner No.4 was passed. The order was subsequently amended/modified at the instance of

non-petitioner No.4 without issuing notice to the petitioner-company. The amount of penalty was substantially increased. It is not only the order passed

by the Real Estate Regulatory Authority subsequent to the period of one year is illegal but the petitioner-company is not having an opportunity to

challenge it by maintaining an appeal in absence of constitution of the Real Estate Appellate Tribunal in the manner given under Sections 43 to 46 of

the Act of 2016.

Learned Additional Advocate General Shri Rajendra Prasad is directed to find out as to why the Real Estate Regulatory Authority and the Real Estate

Appellate Tribunal have not been constituted as per Sections 20 to 22 and Sections 43 to 46 of the Act of 2016. The constitution of such authorities

was to be made within a period of one year from the date of coming into force the Act of 2016. It is said to have come into force since 1st May, 2016.

The period of one year expired on 1st May, 2017. The period of one year has passed subsequent to it. If proper explanation is not given for

compliance of Sections 20 to 22 and Sections 43 to 46, this court will take serious view about the affairs of the State Government even in not carrying

the mandate of the Act of 2016 brought by Parliament.

Taking into consideration the peculiar facts of this case, we stay execution of the orders passed by the Real Estate Regulatory Authority and hearing,

till the next date.

As prayed by learned counsel for non-petitioners, let these cases be listed on 9th August, 2018.