AAP Tax Law legal resources
Real Estate (Regulation and Development) Act, 2016 | Chapter V

Section 20: Establishment and Incorporation of Real Estate Regulatory Authority

Section 20 of the Real Estate (Regulation and Development) Act, 2016 (RERA) provides the legal framework for establishing the Real Estate Regulatory Authority, including the notification requirement, arrangements for joint or multiple authorities, transfer of pending matters and the Authority's corporate status.

Meaning and purpose of Section 20

A Real Estate Regulatory Authority is a statutory regulator constituted by the appropriate Government under RERA to perform the functions and exercise the powers assigned by the Act. The expression appropriate Government is defined in Section 2(g), and its identity depends on the territory and circumstances specified there. The Authority regulates registered real estate projects and agents and deals with matters within its statutory jurisdiction.

Key legal provisions explained

1. Establishment by notification

Section 20(1) requires the appropriate Government to establish the Authority by notification within one year from the commencement of the relevant provision. This is a statutory establishment requirement, not a statement that every Authority was constituted on the same date.

2. Joint or multiple authorities

Two or more States or Union territories may establish one common Authority where the appropriate Governments consider it suitable. More than one Authority may also be established within a State or Union territory.

3. Interim regulatory arrangement

Until the Authority is established, the Government may designate an existing regulatory authority or an officer, preferably the Secretary of the department dealing with housing, to act as the regulator. When the established Authority takes over, pending applications, complaints and cases transfer to it at their existing stage.

4. Separate legal personality

Under Section 20(2), the Authority is a body corporate with perpetual succession and a common seal. Subject to RERA, it may acquire, hold or dispose of movable and immovable property, enter contracts, and sue or be sued in its own name.

Section 20: Statutory text

(1) The appropriate Government shall, within a period of one year from the date of coming into force of this Act, by notification, establish an Authority to be known as the Real Estate Regulatory Authority to exercise the powers conferred on it and to perform the functions assigned to it under this Act:

Provided that the appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Authority:

Provided further that, the appropriate Government may, if it deems fit, establish more than one Authority in a State or Union territory, as the case may be:

Provided also that until the establishment of a Regulatory Authority under this section, the appropriate Government shall, by order, designate any Regulatory Authority or any officer preferably the Secretary of the department dealing with Housing, as the Regulatory Authority for the purposes under this Act:

Provided also that after the establishment of the Regulatory Authority, all applications, complaints or cases pending with the Regulatory Authority designated, shall stand transferred to the Regulatory Authority so established and shall be heard from the stage such applications, complaints or cases are transferred.

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with the power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.

Practical implications

  • Homebuyers and allottees: identify the competent State or Union territory RERA Authority before submitting a project-related complaint or checking a registration.
  • Promoters and agents: comply with registration, disclosure and other requirements administered by the relevant Authority under RERA and applicable State or Union territory rules.
  • Pending matters: the statutory transfer provision prevents a pending case from requiring a fresh start solely because the permanent Authority has been constituted.
Distinction: Section 20 establishes the Authority. Its composition, functions, powers, complaint procedure and appeals are dealt with in other provisions of RERA, including Sections 21, 31, 34, 35, 36, 37 and 43 onwards. State-specific notifications and rules should be checked for the competent Authority and procedure.

Official sources and related provisions