1.3 Statutory Authorities: MahaRERA & Appellate Tribunal

1.3 Statutory Authorities: MahaRERA & Appellate Tribunal

Quick Summary: RERA establishes a multi-tiered regulatory and judicial architecture comprising the Real Estate Regulatory Authority (MahaRERA), Adjudicating Officers, the Real Estate Appellate Tribunal (REAT), and the High Court. This section covers the organizational structure, qualification standards, statutory powers, and mandatory timelines governing dispute resolution under Sections 20 to 58 of the RERA Act, 2016.

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1. Regulatory Architecture Overview

The RERA Act 2016 establishes a streamlined 3-tier regulatory framework to handle real estate governance, project/agent registration, and dispute resolution:

[ Tier 1: Real Estate Regulatory Authority (MahaRERA) / Adjudicating Officer ]
                                   │
                                   ▼  (Appeal within 60 Days)
[ Tier 2: Real Estate Appellate Tribunal (REAT) ]
                                   │
                                   ▼  (Appeal within 60 Days on Question of Law)
[ Tier 3: High Court of the Jurisdiction ]

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2. Real Estate Regulatory Authority (MahaRERA)

A. Establishment & Status [Section 20]

Section 20 mandates every State Government to establish a Real Estate Regulatory Authority. In Maharashtra, MahaRERA was established on 8th March 2017 and became fully operational on 1st May 2017. MahaRERA is a body corporate having perpetual succession, a common seal, and the capacity to acquire, hold, and dispose of property, as well as to sue and be sued.

B. Composition & Appointment [Section 21 & 22]

• Composition: The Authority consists of a Chairperson and at least two Whole-Time Members appointed by the State Government.
• Selection Committee: Appointments are made based on recommendations from a 3-member Selection Committee chaired by the Chief Justice of the High Court or his nominee, accompanied by the Secretary of Housing and the Law Secretary.
• Qualifications: Members must possess at least 20 years of experience (for Chairperson) or 15 years of experience (for Members) in field expertise such as urban development, housing, real estate, finance, economics, law, management, or public administration.
• Tenure & Age Limit [Section 23]: Term of office is 5 years or until attaining the age of 65 years, whichever is earlier. Members are not eligible for re-appointment.

C. Statutory Functions & Powers [Sections 34, 35, 36, 37 & 38]

1. Registration Management: Granting, renewing, extending, or revoking project and agent registrations.
2. Website Disclosure Maintenance: Maintaining a public database of registered projects, promoters, agents, and defaulted entities.
3. Investigative Powers [Section 35]: Power to call for information, issue notices, and inspect records of promoters, agents, or allottees with powers equivalent to a Civil Court under the Code of Civil Procedure, 1908 (CPC).
4. Interim Orders [Section 36]: Power to issue interim restrain orders against promoters or agents preventing unlawful construction, illegal marketing, or unauthorized fund collection.
5. Directives & Penalties [Sections 37 & 38]: Power to issue binding directions for compliance and impose financial penalties for statutory violations.

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3. Adjudicating Officer [Section 71]

For adjudicating compensation claims under Sections 12 (misleading ads), 14 (structural defects), 18 (delay/breach of contract), and 19 (allottee rights), the Authority appoints one or more Adjudicating Officers in consultation with the State Government.

• Qualification: Must be a sitting or retired District Judge.
• Mandate: Conduct summary inquiries to award financial compensation and interest under RERA.

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4. Real Estate Appellate Tribunal (REAT) [Sections 43 – 57]

A. Establishment & Composition [Section 43 & 45]

Section 43 requires State Governments to establish an Appellate Tribunal. The Maharashtra Real Estate Appellate Tribunal (MahaREAT) hears appeals against orders, decisions, or directions issued by MahaRERA or Adjudicating Officers.

• Composition: Consists of a Chairperson (sitting or retired High Court Judge) and at least two Members—one Judicial Member and one Technical/Administrative Member.

B. Appeals Process & Timelines [Section 44]

• Filing Window: Any aggrieved person (Promoter, Allottee, or Agent) or the Government can file an appeal within 60 days from the date of receipt of the order.
• Target Disposition: The Appellate Tribunal is statutorily mandated to hear and dispose of appeals within 60 days of receipt. If an appeal cannot be disposed of within 60 days, reasons must be recorded in writing.

C. Mandatory Pre-Deposit Requirement [Section 43(5)]

A critical exam topic under Section 43(5) is the mandatory pre-deposit requirement imposed on promoters:

Section 43(5) Rule: Where an appeal is filed by a Promoter, the appeal SHALL NOT BE ENTERTAINED by the Appellate Tribunal unless the promoter has deposited at least 30% of the penalty OR 100% of the total amount to be paid to the allottee (including interest and compensation), or such higher percentage as determined by the Tribunal, before the appeal is heard.

This provision prevents promoters from using frivolous litigation to delay refunding allottees.

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5. Appeal to High Court [Section 58]

Any person aggrieved by any decision or order of the Real Estate Appellate Tribunal may file an appeal to the High Court within 60 days from the date of communication of the decision.

• Limitation: Appeals to the High Court can be filed ONLY on a question of law (analogous to Section 100 of the Code of Civil Procedure, 1908).

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6. Structural & Functional Comparison Table