Real Estate (Regulation and Development) Act, 2016

Section 37 of RERA, 2016: Powers of Authority to Issue Directions

Section 37 authorises the Real Estate Regulatory Authority to issue directions necessary for performing its statutory functions. Such directions are binding on the promoters, allottees and real estate agents concerned.

Meaning and scope of Section 37

The Real Estate (Regulation and Development) Act, 2016 (RERA) establishes a regulatory framework for registered real estate projects, promoters and real estate agents. Section 37 empowers the relevant State or Union Territory Real Estate Regulatory Authority (the Authority) to give directions from time to time for discharging functions under the Act and the rules and regulations made under it.

The power is connected to the Authority's statutory functions. It is not an unrestricted power to create new obligations contrary to the Act or to decide matters beyond its jurisdiction. The terms and legal effect of any direction depend on the Act, applicable rules and regulations, and the facts of the particular case.

Text of Section 37: Powers of Authority to issue directions

The Authority may, for the purpose of discharging its functions under the provisions of this Act or rules or regulations made thereunder, issue such directions from time to time, to the promoters or allottees or real estate agents, as the case may be, as it may consider necessary and such directions shall be binding on all concerned.

Who may receive binding directions?

Promoter: Broadly, a person who constructs or develops a real estate project for sale, or otherwise falls within the definition in Section 2(zk) of RERA.
Allottee: A person to whom a plot, apartment or building has been allotted, sold or otherwise transferred, including a subsequent acquirer, subject to the statutory definition in Section 2(d); a person taking it on rent is excluded.
Real estate agent: A person who negotiates or acts on behalf of another person in a transaction for transfer of a plot, apartment or building in a real estate project for remuneration, within Section 2(zm).

Practical operation of the power

Directions under Section 37 may be used to secure compliance with the Act, applicable rules, regulations and the Authority's lawful regulatory requirements. A direction must relate to the functions conferred on the Authority and may be addressed to a promoter, allottee or agent as the circumstances require.

Section 37 expressly makes the directions binding on all concerned. The Authority's power to issue directions should be read together with Section 34 (functions of the Authority) and other provisions governing investigation, interim relief and enforcement.

How Section 37 differs from related powers

Section 35: permits the Authority to call for information and conduct inquiries, with specified civil-court powers.
Section 36: provides for interim restraint orders during an inquiry, including without notice where the statutory conditions are met.
Section 38: sets out further powers and procedural matters concerning the Authority.
Section 40: deals with recovery of interest, penalty and compensation and enforcement of orders and directions.

Compliance, non-compliance and remedies

Promoters, allottees and real estate agents should examine the exact direction, the time allowed for compliance, and the applicable State or Union Territory RERA rules. Non-compliance may attract statutory consequences under the applicable provisions of RERA, depending on the nature of the direction and the party involved.

Where a person is aggrieved by a direction or order, the availability, forum and limitation for a challenge must be assessed against the applicable appeal provisions, including Section 44 (appeals to the Real Estate Appellate Tribunal), and the character of the particular decision. Section 37 itself does not prescribe a standalone appeal procedure.

Key point: Section 37 confers a power to issue necessary directions in the exercise of statutory functions, and expressly provides that lawful directions are binding on the persons concerned.

Official legal sources

For the enacted legislation, amendments and the applicable rules, consult India Code (Government of India) and the Ministry of Housing and Urban Affairs. State or Union Territory RERA authority portals provide jurisdiction-specific regulations, directions, circulars and procedures.