'RERA Exercises Very Sensitive Functions, Not In Interest Of Justice To Allow Supersession': High Court Stays Punjab Govt's Order To Take Over RERA

The Punjab & Haryana High Court has stayed the Punjab Government's order to supersede Real Estate Regulatory Authority (RERA) on account of vacant positions in the authority's bech.

A notice was issued by the Punjab Government on March 12 that in the public interest, the Governor of Punjab was superseding Real Estate Regulatory Authority Punjab for four months or till the Quorum is complete or which ever is earlier under section 82 of the Real Estate Regulation and Development Act 2016.

For context, as per Section 82 of the Act if the Government is of the opinion that, on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it, then the Government can supersede the authority.

While issuing notice on the plea challenging the supersession, a division bench of Acting Chief Justice G.S. Sandhawalia and Justice Lapita Banerji, said that, "Keeping in view the larger interest, especially, keeping in view the fact that the Authority has to exercise a very sensitive function as such of permissions to be given to builders and dealing with complaints against the builders, we are of the considered opinion that it would not be in the interest of justice if the supersession is allowed at this point of time. Accordingly, we stay the order dated 12.03.2024 and all consequential orders passed thereafter."

Keerti Sandhu and Amritpal Singh Sandhu, practising advocates at Punjab & Haryana High Court filed a PIL challenging the order of suppression of RERA issued by the Punjab Government, alleging that the same was a colourable exercise of power.

The RERA is comprised of a Chairperson and not less than two full-time Members.

It was contended that a bench member Ajay Pal Singh, retired in January, and no proactive initiative was taken by the Government for the appointment of the member which was left vacant.

Thereafter in February, it was claimed that the chairperson of the authority retired before the end of his tenure under mysterious circumstances and the Authority was left with one member only.

The plea stated that the only remaining bench member was sent on mandatory leave from March 10 to June 06, and on the same day the Punjab Government issued a notice under Section 82 of the RERA Act 2016 for proposed suppression of the authority with 3 days notice wherein two were non-working days, for the bench member to make a representation.

On March 13, the Punjab Government issued a notification announcing that it is superseding RERA for four months or till the Quorum is complete.

Advocate General for Punjab submitted that the process of appointment is underway and even the Scrutiny Committee was formed and the next meeting is fixed for March 18 to appoint the Member.

"It is also a matter of record that vide letter dated 12.02.2024 after the resignation of the Chairperson on 07.02.2024, the State Government had requested the Registrar General of this Court to take action for the purposes of appointment of the Chairperson and nominate an Hon'ble Judge of this Court under Section 22 of the Act which had been duly done and intimation had been given on 22.02.2024," the Court noted.

AG Punjab defended the order on the grounds that as per the contentions in the writ petition itself, the apprehension was on account of the Model Code of Conduct coming into force due to the impending Lok Sabha Elections and a large number of pending cases and regulatory applications being pending before the RERA.

After hearing the submissions the Court issued notice to the Punjab Government, Department of Housing and Urban Development, RERA, Union of India, Ministry of Housing and Urban Affairs and Chief Election Commissioner.

While listing the matter for April 18, the Court stayed the supersession order and all consequential orders passed thereafter.

However, it clarified that the stay will not preclude the selection process which is already undergoing and efforts be made to complete it at the earliest.

Jatin Bansal, Advocate, Harshit Kakani, Advocates for the petitioners.

Gurminder Singh, Advocate General, Punjab, with  J.S. Gill, Deputy Advocate General, Punjab.

Satya Pal Jain, Additional Solicitor General of India, with  Shobit Phutela, Advocate, for Union of India.

Prateek Gupta, Advocate, for respondent No. 6.

Title: Keerti Sandhu and another v. State of Punjab and others

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