RERA ACT, 2016 • CHAPTER VI
Section 42: Functions of the Central Advisory Council under RERA, 2016
Section 42 of the Real Estate (Regulation and Development) Act, 2016 specifies the advisory responsibilities of the Central Advisory Council and enables the Central Government to make rules to give effect to its recommendations. The provision focuses on implementing the Act, framing policy, protecting consumers and supporting the orderly development of the real estate sector.
Section 42: Functions of Central Advisory Council - statutory provisions
(1) The functions of the Central Advisory Council shall be to advise and recommend the Central Government,-
(a) on all matters concerning the implementation of this Act;
(b) on major questions of policy;
(c) towards protection of consumer interest;
(d) to foster the growth and development of the real estate sector;
(e) on any other matter as may be assigned to it by the Central Government.
(2) The Central Government may specify the rules to give effect to the recommendations of the Central Advisory Council on matters as provided under sub-section (1).
Meaning and scope of Section 42
The Central Advisory Council (CAC) is a national-level advisory body provided for under Section 41. Section 42 sets out what it advises the Central Government about. Its role is consultative and policy-oriented; it is not a substitute for a State or Union Territory Real Estate Regulatory Authority, adjudicating officer or Real Estate Appellate Tribunal.
In this context, implementation means the practical operation of the Act and its framework, while consumer interest concerns the protection of homebuyers and other consumers affected by real estate practices. The Council's recommendations are advisory; they do not, by themselves, amount to an enforceable order against a promoter, allottee or real estate agent.
Five principal functions under Section 42(1)
1. Implementation of the Act - clause (a)
The Council may advise on effective implementation of RERA, including administrative coordination, regulatory experience and challenges in putting the statutory framework into practice.
2. Major policy questions - clause (b)
The Council may recommend approaches to significant policy issues concerning real estate regulation, transparency, accountability and sector-wide practices.
3. Protection of consumer interest - clause (c)
Consumer protection is an express statutory consideration. Recommendations may address issues affecting homebuyers, disclosures, fair dealing and confidence in regulated real estate transactions.
4. Growth and development of the sector - clause (d)
The Council is also tasked with fostering the growth and development of the real estate sector, while considering the regulatory framework and interests of consumers.
5. Matters assigned by the Central Government - clause (e)
The Central Government may assign additional subjects to the Council for its advice and recommendations.
Section 42(2): Giving effect to recommendations
Sub-section (2) states that the Central Government may specify rules to give effect to the Council's recommendations on matters within sub-section (1). The word may makes this an enabling provision; a recommendation does not automatically become a binding rule. Applicable rule-making powers, statutory procedures and the allocation of regulatory responsibilities under RERA must still be respected.