The state government has appointed urban affairs secretary B Ashok as the interim real estateregulatory authority (RERA), six months after the government had repealed Kerala real estate (regulation and development) Act, 2015, bringing central act into force in the state. Kerala real estate (regulation and development) Act repeal ordinance, 2017 was promulgated by the governor on July 15, 2017.
The interim regulatory authority has been established based on section 20 of Real Estate (Regulation and Development) Act, 2016. As per the section, the government can establish an authority to be known as the real estate regulatory authority to exercise the powers conferred on it and to perform the functions assigned to it.
It also says that until the establishment of a regulatory authority under this section, the government shall, by order, designate any regulatory authority or any officer preferably the secretary of the department dealing with housing, as the regulatory authority for the purposes under RERA.
The LDF government had repealed Kerala real estate (regulation and development) Act, 2015 citing that it did not protect the interests of consumer and that many of its provisions aimed at safeguarding builders. With the Act becoming non-existent, the regulatory authority formed based on it had also ceased to exist.
Kerala is one of the few remaining states in the country which has failed to notify real estate regulation rules within the deadline. Real Estate (Regulation and Development) Act, 2016 had come into effect across the country on May 1, 2017 and all states were supposed to notify the rules by July 31, 2017.
The LDF government’s decision to repeal Kerala real estate (regulation and development) Act, 2015 and dismantle the authority formed during UDF regime had created dissent among a section of officials who had pointed out that the existing rules under the Act could have been amended instead of repealing the Act. The first authority formed under Kerala real estate (regulation and development) Act, 2015 had even drafted a set of modifications to be incorporated in the rules, which were totally ignored.
With the government now going for an interim authority, officials said that there could be further delay in having a full-fledged RERA in the state.
The order appointing urban affairs secretary as the interim regulatory authority, however, says that the decision to have an interim body has been forced by growing number of real estate-related complaints and litigations in the absence of such an authority.
As per the central act, the chairperson and other members of the authority shall be appointed by the government on the recommendations of a selection committee consisting of the chief justice of the high court or his nominee, the secretary of housing and the law secretary.
Source- The Times of India
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