(1) The appropriate Government shall, within a period of one year from the date of coming into force of this Act, by notification, 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 under this Act:
Provided that the appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Authority:
Provided further that , the appropriate Government may, if it deems fit, establish more than one Authority in a State or Union territory, as the case may be:
Provided also that until the establishment of a Regulatory Authority under this section, the appropriate 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 this Act:
Provided also that after the establishment of the Regulatory Authority, all applications, complaints or cases pending with the Regulatory Authority designated, shall stand transferred to the Regulatory Authority so established and shall be heard from the stage such applications, complaints or cases are transferred.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with the power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
Legal Commentary & Landmark Judgments: Section 20
Section 20 of RERA mandates the establishment of the Real Estate Regulatory Authority by the Appropriate Government to regulate the real estate sector and adjudicate disputes between allottees and promoters.
The Authority serves as the primary watchdog and adjudicatory body responsible for registering projects, monitoring compliance, maintaining the public database of developers, and issuing binding directions under Section 37.
RERA authorities function as specialized economic regulators equipped with powers of a civil court. They can summon records, inspect developer premises, freeze bank accounts, and impose monetary penalties without the procedural bottlenecks characteristic of traditional civil litigation.