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The Real Estate Appellate Tribunal (REAT) of Bihar has issued an important directive to the state government, highlighting the necessity of comprehensive training for members of the Real Estate Regulatory Authority (RERA). The tribunal emphasized the need to enhance their understanding of the laws governing the real estate sector in order to improve the functioning of the authority.
This order comes in response to concerns raised about the improper functioning of the authority, particularly regarding the registration of a commercial-cum-residential project without a thorough examination of the associated authenticated documents.
According to the recent order, "The Tribunal finds that members of the authority are required to be given training for proper understanding of the Real Estate (Regulation and Development) Act, 2016, Bihar Apartment Ownership Act, 2006, Bihar Municipal Act, 2007, and building bye-laws. The government is urged to arrange the necessary training at the Bihar Judicial Academy, with the permission of the appropriate authority."
The Bihar REAT issued this order during the hearing of an appeal filed by Gopal Prasad Singh of Danapur, Bihar, against M/S Jascon Enterbuild Ltd and the state RERA. Singh had entered into an agreement with the builder in August 2011 for the construction of a multi-storied commercial and residential complex, but discrepancies were observed in the project's approval and subsequent registration.
The tribunal expressed concern over the fact that the RERA had registered the project in July 2019 and issued a registration certificate without fulfilling the mandatory requirement of submitting essential documents in accordance with the central law. Even the counter affidavit submitted by RERA before the REAT failed to explain how the project had been registered without a valid map plan and how the extension of registration was granted.
Emphasizing the gravity of the situation, the tribunal stated, "In the present case, registration was done without application of mind in a mechanical way. It appears that the authority has not fully understood the objectives of the Act, particularly Section-4, which requires the submission of all mandatory documents for project registration, including authenticated copies of approvals and commencement certificates from the competent authority." It became evident that no valid sanctioned plan was in place at the time of the project's registration.
Abhay Upadhyay, a member of the Central Advisory Council for RERA, commented on the matter, stating, "This order issued by the Bihar REAT is equally relevant for all regulatory authorities across India. It exposes how Bihar RERA has reduced the entire registration process to a mere mechanical exercise, neglecting the necessary checks. This raises concerns about how they are fulfilling their other responsibilities under the Act."
The tribunal's order serves as a wake-up call for real estate regulators nationwide, underlining the importance of proper training and a comprehensive understanding of the legal framework to ensure effective regulation and oversight in the real estate sector.
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