RERA bodies have become ‘rehabilitation centers for former bureaucrats’: Supreme Court
The Supreme Court bench of Justices Surya Kant and Ujjal Bhuyan recently made a critical observation about the Real Estate Regulatory Authority (RERA), stating that it has become a “rehabilitation center” for former bureaucrats. The court’s remark highlights concerns about the composition and functioning of these bodies, which were established to protect the rights of homebuyers.
Former Bureaucrats have Dominated RERA Compositions Across States
Currently, most sitting chairpersons of RERA bodies in various states are former government servants, particularly ex-IAS, IPS, or IFS officers. Although the Real Estate Regulation and Development Act mandates eligibility criteria of at least 20 years’ experience in relevant fields for chairpersons, sources reveal that former officers are usually preferred and selected.
For instance, barring the Telangana RERA, all other states have appointed former senior bureaucrats as chairpersons. The Act also allows individuals with at least 15 years of experience in specified fields to become members or RERA chairpersons. These appointments are made by states, based on the recommendations of a selection committee consisting of the chief justice of the High Court (HC) or their nominee, and secretaries of housing and law departments in the respective states.
Perceptions Vary Among Former RERA Chiefs
Opinions among former and serving RERA chiefs who are also former bureaucrats vary in response to the Supreme Court’s observation. Some believe that former bureaucrats in these positions have achieved positive outcomes, especially during the challenging Covid-19 period. They argue that the authorities provided relief to stakeholders within the framework of the Act, suggesting that the court’s comments may not apply to all RERA bodies.
Others agree that if a particular authority has failed in its duties, the court’s observation may be valid to some extent. However, strictly considering all RERA bodies as failures would be an unfair generalization, according to those with this viewpoint. It is emphasized that while former bureaucrats have been appointed, there have also been members with relevant expertise such as chartered accountants, senior town planners, and technical professionals in these authorities.
Ensuring Relief for Buyers – A Pressing Need
Former Haryana RERA chairman, K K Khandelwal, acknowledges the important role played by former bureaucrats and professionals in the RERA framework. Highlighting the dual responsibilities of regulation and development covered by real estate laws, Khandelwal suggests that there is still room for improvement. RERA bodies need to work towards ensuring that buyers are adequately protected and provided with necessary relief.
As the courts scrutinize the functioning of RERA bodies, there may be renewed emphasis on attracting individuals with diverse backgrounds and expertise. Striking a balance between former bureaucrats and professionals with experience in urban development, housing, and other relevant fields will be crucial to enhance the effectiveness of RERA in safeguarding the rights of homebuyers.
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The recent statement by the Supreme Court about the Real Estate Regulatory Authority (RERA) has ignited the discussion regarding the composition and functioning of these regulatory bodies. The court referred to RERA as a “rehabilitation center” for former bureaucrats, pointing out concerns about who exactly is leveraging authority in the industry. This has put the spotlight on the eligibility criteria and the individuals chosen to govern RERA.
Currently, in many states, former government servants, including ex-IAS, IPS, or IFS officers, occupy the post of RERA chairpersons. Although the Real Estate Regulation and Development Act specify that individuals with 20 years’ experience in various fields are eligible for chairperson appointments, it seems that former officers are being preferred, ultimately leading to their selection.
Among the states, all except Telangana have former senior bureaucrats at the helm of RERA. The Act mandates a selection committee consisting of key officials in the housing and law departments of the respective state, recommended by the Chief Justice of the High Court (HC) or their nominee. But despite the well-defined procedure, there seems to be a pattern of former bureaucrats feeling at home in their positions of influence within RERA.
The opinions on this issue remain divided within the RERA community itself. Some former RERA heads argue that the judges’ observation must be taken as a generalization that does not capture the work achieved by former bureaucrats who proved to be effective stakeholders in RERA’s framework. They highlight moments where authorities granted relief during the Covid-19 pandemic efficiently within the Ambit of the Act. Not all RERA bodies can be painted with a broad brush essentially, as each has its own levels of success and shortcomings.
The challenge now lies in ensuring that RERA authorities prioritize the protection and relief for homebuyers. K K Khandelwal, one former Haryana RERA chairman, believes that while the combination of former bureaucrats and professionals signifies experience, more can be done to address the pressing concern of safeguarding buyer’s rights. Notably, these laws regulate both real estate and its development, implying that stakeholders must work collectively to uplift this domain. Integrating experts from varying fields such as chartered accountants, senior town planners, and technical professionals is crucial for enhancing the functioning of RERA.
Going forward, it is vital to establish equilibrium between former bureaucrats and domain experts, prioritizing individuals experienced in urban development, housing, and related fields. By implementing judicious selection practices, RERA bodies can operate seamlessly and accomplish their fundamental purpose of ensuring justice for homebuyers.
