Central Advisory Council under RERA

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted with a vision to bring transparency, accountability, and efficiency to the real estate sector in India. While much attention has been given to the Real Estate Regulatory Authorities (RERAs) set up in various States and Union Territories, the Act also provides for the establishment of a Central Advisory Council at the national level. This Council plays a vital role in advising the Central Government on policy matters and the effective implementation of the Act.

This article aims to provide a detailed, yet easy-to-understand, explanation of the Central Advisory Council under RERA. It explains its constitution, functions, importance, and the role it plays in shaping India’s real estate sector.

What is Central Advisory Council under RERA?

The Central Advisory Council is an advisory body established by the Central Government under Section 41 of the RERA Act. Its primary purpose is to provide guidance and recommendations to the Government on various matters concerning the implementation and development of the real estate sector under the ambit of RERA.

While State-level RERAs regulate projects and resolve disputes locally, the Central Advisory Council ensures national coordination and provides a platform for multiple stakeholders to come together and deliberate on the sector’s broad challenges and opportunities.

Establishment and Composition of the Council

Establishment

The Central Advisory Council is set up by a notification issued by the Central Government, which also specifies the date from which it will become operational. The Act states that the Government may establish the Council, indicating some flexibility; however, the Council has been constituted and operational since the Act’s early days.

Chairperson

The Act mandates that the Minister in charge of the Ministry of Housing and Urban Affairs shall be the ex officio Chairperson of the Council. This ensures the Council’s direct connection to the highest level of policymaking in the housing sector, providing weight and visibility to its recommendations.

Membership

The Council’s membership is designed to represent a broad spectrum of government departments, regulatory bodies, industry stakeholders, and consumer representatives. It consists of the following:

• Representatives from various Central Government Ministries:
  • Ministry of Finance
  • Ministry of Industry and Commerce
  • Ministry of Housing and Urban Affairs
  • Ministry of Consumer Affairs
  • Ministry of Corporate Affairs
  • Ministry of Law and Justice
• Representatives from important national institutions:
  • NITI Aayog
  • National Housing Bank (NHB)
  • Housing and Urban Development Corporation (HUDCO)
• Five representatives of State Governments, selected by rotation. This ensures diverse regional perspectives and the inclusion of ground realities from different States.
• Five representatives of State Real Estate Regulatory Authorities (RERAs), also selected by rotation. This brings practical regulatory insights to the Council.
• Representatives from other Central Government departments as notified from time to time, allowing flexibility to include other key ministries or departments when necessary.

Representation from the Real Estate Sector and Civil Society

To ensure holistic decision-making, the Central Advisory Council also includes up to ten members representing:

• The real estate industry
• Consumers and homebuyers
• Real estate agents
• Construction labourers
• Non-governmental organisations (NGOs) involved in real estate or consumer welfare
• Academic and research institutions focusing on the real estate sector

This diverse composition facilitates a balanced dialogue between government bodies, industry players, consumers, and experts.

Functions of the Central Advisory Council

The primary role of the Central Advisory Council is advisory in nature. It recommends and advises the Central Government on several key matters as detailed in Section 42 of the RERA Act. The functions include:

Advising on Implementation of the Act

The Council monitors and advises the Government on how effectively the RERA Act is being implemented across the country. It can suggest measures to overcome difficulties, improve coordination among States, and enhance the functioning of State RERAs and Appellate Tribunals.

Recommending on Major Policy Questions

The Central Advisory Council advises the Government on important policy issues impacting the real estate sector. This may include recommendations on regulatory reforms, standardisation of practices, or integration of technological tools to improve transparency and consumer protection.

Protecting Consumer Interests

Consumer protection is one of RERA’s fundamental objectives. The Council recommends policies and measures to safeguard the interests of homebuyers and other consumers involved in real estate transactions. This includes issues related to grievance redressal, fair practices, disclosure norms, and more.

Fostering Growth and Development of the Real Estate Sector

Recognising the importance of real estate in India’s economic growth, the Central Advisory Council advises on ways to promote healthy development of the sector. It can suggest reforms to attract investments, promote affordable housing, encourage sustainable construction, and streamline regulatory processes.

Other Matters as Assigned by the Government

The Council may also be tasked with any other subject related to the real estate sector as directed by the Central Government.

Rule-Making Powers and Impact of Recommendations

While the Central Advisory Council itself does not have legislative powers, Section 42(2) empowers the Central Government to make rules to implement the Council’s recommendations. Thus, the Government can frame regulations or amend existing ones based on the Central Advisory Council ’s advice.

The impact of the Council is therefore indirect but significant. Through its consultations and recommendations, it influences policy formulation, regulatory framework adjustments, and the overall direction of the real estate sector.

Importance of the Central Advisory Council

The Council plays an important role for various stakeholders:

For the Central Government

• Acts as a forum to get multi-sectoral inputs before framing policies.
• Helps coordinate between different ministries involved in housing and urban development.
• Facilitates evidence-based decision-making with industry and consumer inputs.

For State Governments and RERAs

• Provides a platform for sharing challenges and best practices.
• Encourages uniformity and convergence in implementing the Act across States.
• Assists in capacity building and resource allocation discussions.

For Consumers and Homebuyers

• Offers a channel through which consumer interests can be voiced at the highest level.
• Promotes better grievance redressal mechanisms and transparency in transactions.
• Helps in framing consumer-friendly regulatory policies.

For Real Estate Industry and Agents

• Provides an opportunity to present their challenges and suggestions.
• Encourages policies that balance regulation with ease of doing business.
• Helps in professionalising the sector and standardising practices.
  

For Labourers and NGOs

• Ensures the concerns of construction labour and vulnerable groups are represented.
• Promotes welfare schemes and safer working conditions.
• Helps NGOs influence policy based on grassroots experiences.

Working and Functioning of the Council

The Act does not specify the frequency of meetings or procedural details. However, in practice, the Council holds periodic meetings, which are usually chaired by the Housing Minister or a designated representative.

The Council may also form sub-committees or working groups to focus on specific issues such as technology integration, consumer grievance mechanisms, or financial regulations.

Meeting minutes and reports of the Council help the Central Government track progress and implement the recommendations effectively.

Conclusion

The Central Advisory Council under RERA is an essential instrument for guiding India’s real estate sector towards transparency, accountability, and sustainable growth. By bringing together representatives from various ministries, State Governments, industry, consumers, and experts, it ensures that the Central Government’s policy decisions are well-informed and balanced.

While it does not possess direct enforcement powers, its recommendations shape the regulatory environment and influence key decisions affecting millions of homebuyers, developers, and other stakeholders. 

Frequently Asked Questions (FAQs)

Q1. Who appoints the members of the Central Advisory Council?
Members representing Central Ministries are nominated by their respective departments. State Government and RERA representatives are selected on a rotational basis. Stakeholder members are nominated by the Central Government, usually through invitations for applications or recommendations.

Q2. Does the Central Advisory Council have the power to enforce any decisions?
No. The Council is purely advisory. Enforcement and adjudication powers rest with the State RERAs and Appellate Tribunals.

Q3. Can individuals approach the Central Advisory Council for grievance redressal?
No. The Central Advisory Council deals with policy and systemic matters. Individual grievances must be taken up with the respective State RERA.

Q4. How often does the Central Advisory Council meet?
The Act does not specify. The frequency is decided by the Central Government, generally at least once or twice a year, or more as needed.

Q5. Is the Council’s work transparent to the public?
The Council’s meetings are not usually open to the public, but summaries or decisions may be published by the Ministry for wider dissemination.