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

Section 26: Removal of Chairperson and Members from Office

Section 26 of the Real Estate (Regulation and Development) Act, 2016 (RERA) specifies the grounds on which the appropriate Government may remove the Chairperson or a Member of a Real Estate Regulatory Authority, and provides additional safeguards for removal on certain grounds.

Text of Section 26 - Removal in certain circumstances

(1) The appropriate Government may, in accordance with the procedure notified, remove from office the Chairperson or other Members, if the Chairperson or such other Member, as the case may be,-

(a) has been adjudged as an insolvent; or

(b) has been convicted of an offence, involving moral turpitude; or

(c) has become physically or mentally incapable of acting as a Member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest.

(2) The Chairperson or Member shall not be removed from his office on the ground specified under clause (d) or clause (e) of sub-section (1) except by an order made by the appropriate Government after an inquiry made by a Judge of the High Court 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.

Meaning and scope of Section 26

The Real Estate Regulatory Authority is the statutory regulator established under Section 20 of RERA. Under Section 21, the Authority consists of a Chairperson and at least two whole-time Members. Section 26 governs their removal from office and is distinct from expiry of tenure or resignation under Sections 23 and 24.

Five statutory grounds for removal

Sub-section (1) identifies five grounds: adjudication as an insolvent; conviction of an offence involving moral turpitude; physical or mental incapacity to act as a Member; acquisition of a financial or other interest likely to prejudice official functions; and abuse of position making continued service prejudicial to the public interest. The appropriate Government must follow the procedure notified for removal.

Special inquiry safeguard for conflicts of interest or abuse of position

Under sub-section (2), removal on grounds specified in clauses (d) or (e) requires an inquiry by a Judge of the High Court before the appropriate Government makes its order. The affected Chairperson or Member must be informed of the charges and given a reasonable opportunity of being heard. This additional statutory safeguard is expressly attached to those two grounds; the applicable notified procedure must also be observed.

Meaning of important terms

Appropriate Government: the Central Government or the relevant State Government, as determined by the definition in Section 2(g) of RERA. Financial or other interest: an interest capable of adversely affecting impartial performance of official functions. Moral turpitude: a legal expression referring to conduct involving serious moral wrongdoing; whether an offence involves moral turpitude depends on the nature of the offence and the applicable legal principles. Reasonable opportunity of being heard: an opportunity to know and answer the charges in the prescribed inquiry.

Related provisions and practical effect

Sections 21 and 22 concern the Authority's composition and appointment qualifications; Sections 23 and 24 address tenure, service conditions, resignation and vacancies; Section 27 addresses restrictions following cessation of office. In a particular removal matter, the relevant Central or State rules and notifications, charges, inquiry record and removal order must be examined.

Official resources: Consult the India Code repository for the Act and the Ministry of Housing and Urban Affairs for RERA resources. Applicable State or Union territory rules and notifications should be checked with the concerned government or RERA Authority.