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The Haryana government's directive, which gave Real Estate Regulatory Authority (RERA) officials direct recovery powers similar to revenue officers, was declared invalid by the Punjab and Haryana High Court earlier this week. The court determined that this move contravened the Real Estate (Regulation and Development) Act, 2016, which delineates RERA's role as primarily adjudicatory. The state's notification, issued in May 2024, was challenged by a real estate firm in June 2024, leading to this landmark judgment. The court emphasized that enforcement of dues must align with the Haryana Land Revenue Act, 1887, necessitating the involvement of designated revenue officers.
The Punjab and Haryana High Court overturned the Haryana government's May 2024 notice, which gave Real Estate Regulatory Authority (RERA) officials the power to directly collect debts like interest, fines, and compensation, in a landmark decision earlier this week. The court asserted that this empowerment was inconsistent with the Real Estate (Regulation and Development) Act, 2016, which confines RERA's functions to inquiry and adjudication. Advertisement
The division bench, comprising Justice Sureshwar Thakur and Justice HS Grewal, highlighted that the state's action blurred the lines between rule-making and adjudication, functions that should remain distinct. The government's justification, citing potential advantages, was deemed insufficient. The court further clarified that any outstanding amounts should be recovered as arrears of land revenue, necessitating the appointment of appropriate revenue officers, as per the Haryana Land Revenue Act, 1887.
This judgment arose from a petition filed by a real estate firm in June 2024, challenging the state's notification. The court's decision mandates the Haryana government to revise its recovery mechanisms, ensuring compliance with established legal frameworks. Consequently, RERA will need to adjust its operations to align with this directive.
By reaffirming that RERA's role is primarily adjudicatory, the court has emphasized the necessity for clear demarcation between different governmental functions. This ruling not only impacts Haryana's approach to real estate regulation but also sets a precedent for other states, highlighting the need for compliance with foundational legal statutes. As the Haryana government revises its recovery protocols, this development serves as a reminder of the judiciary's role in maintaining the balance of power within the regulatory landscape.
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