Punjab & Haryana HC Quashes Notification empowering HRERA Officers
The Punjab and Haryana High Court has struck down a Haryana Government notification that empowered Real Estate Regulatory Authority (HRERA) officers with enhanced powers to recover dues from unregistered projects.
Real EstateHreraPunjab Haryana High CourtRera ActRegulatory FrameworkReal EstateApr 28, 2025
The notification, which came into effect on October 27, 2022, granted HRERA officers the authority to take actions under Section 83 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act). This section allows the authority to recover any amount due from a promoter, seller, or allottee, including interest, legal costs, and reimbursement. The powers were also extended to include the authority to issue warrants for the arrest of defaulters and to seize and sell their properties.
However, the High Court, in its judgment, ruled that the notification was ultra vires the parent act and violated the principles of natural justice. The court opined that the powers granted to HRERA officers were excessive and unfair, and that they could lead to arbitrary actions and misuse of authority.
The decision has been welcomed by the real estate industry, which had raised concerns over the broad powers given to HRERA officers. The Indian Real Estate Developers Association (IREDA) and the Confederation of Real Estate Developers' Associations of India (CREDAI) had expressed their reservations about the notification, arguing that it could stifle the growth of the sector and deter new investments.
The Haryana government, in its defense, had argued that the notification was necessary to protect the interests of homebuyers and to ensure that developers adhere to the regulatory framework. The government had also pointed out that similar powers have been granted to real estate authorities in other states, including Maharashtra and Uttar Pradesh, without any legal challenges.
Despite the government's arguments, the High Court maintained that the notification violated the principles of proportionality and fairness. The court also emphasized the importance of adhering to the rule of law and ensuring that the powers granted to regulatory bodies are balanced and justified.
The real estate sector in Haryana has faced numerous challenges in recent years, including delays in project completions, financial mismanagement, and lack of transparency. The introduction of RERA in 2016 was aimed at addressing these issues and bringing much-needed reforms to the sector. While the notification was intended to strengthen the regulatory framework, the court's decision highlights the need for a careful and balanced approach.
The judgment is expected to have a significant impact on the real estate sector in Haryana. Developers and homebuyers will now have more clarity on the regulatory landscape, which could boost confidence and encourage more investments. The Haryana government may need to reconsider its approach and introduce a more balanced notification that addresses the concerns raised by the court and the industry.
The decision of the Punjab and Haryana High Court to quash the notification is a victory for the rule of law and the principles of fairness and justice. It underscores the importance of ensuring that regulatory bodies operate within the bounds of the law and do not overstep their mandate. The real estate sector in Haryana will likely see a more stable and predictable regulatory environment in the coming years, which could contribute to its growth and development.
Frequently Asked Questions
What was the notification issued by the Haryana Government?
The notification granted HRERA officers additional powers to recover dues from unregistered real estate projects under Section 83 of the RERA Act.
Why did the Punjab and Haryana High Court quash the notification?
The court ruled that the notification was ultra vires the parent act and violated the principles of natural justice and fairness.
What were the concerns raised by the real estate industry?
The industry argued that the broad powers given to HRERA officers could stifle growth and deter new investments.
What is the impact of the court's decision on the real estate sector in Haryana?
The decision is expected to bring more clarity to the regulatory landscape, boost confidence, and encourage more investments in the sector.
What is the Real Estate (Regulation and Development) Act, 2016 (RERA Act)?
The RERA Act is a law aimed at regulating the real estate sector, protecting homebuyers, and ensuring transparency and accountability in real estate projects.
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