Section 27 RERA: Restrictions on Chairperson or Members on employment after cessation of office

Section 27 of Real Estate (Regulation and Development) Act, 2016: Restrictions on Chairperson or Members on employment after cessation of office

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) The Chairperson or a Member, ceasing to hold office as such, shall not--

(a) accept any employment in, or connected with, the management or administration of, any person or organisation which has been associated with any work under this Act, from the date on which he ceases to hold office:

Provided that nothing contained in this clause shall apply to any employment under the appropriate Government or a local authority or in any statutory authority or any corporation established by or under any Central, State or provincial Act or a Government Company, as defined under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), which is not a promoter as per the provisions of this Act;

(b) act, for or on behalf of any person or organisation in connection with any specific proceeding or transaction or negotiation or a case to which the Authority is a party and with respect to which the Chairperson or such Member had, before cessation of office, acted for or provided advice to, the Authority;

(c) give advice to any person using information which was obtained in his capacity as the Chairperson or a Member and being unavailable to or not being able to be made available to the public;

(d) enter into a contract of service with, or accept an appointment to a board of directors of, or accept an offer of employment with, an entity with which he had direct and significant official dealings during his term of office as such.

(2) The Chairperson and Members shall not communicate or reveal to any person any matter which has been brought under his consideration or known to him while acting as such.

Legal Commentary & Landmark Judgments: Section 27

Section 27 empowers the Authority to appoint officers, technical experts, and staff necessary for the efficient discharge of regulatory and administrative functions.

Staff Appointment: Authority may appoint such officers and other employees as it considers necessary for the efficient discharge of its functions.
Executive Approval & Budget: Staffing patterns, salaries, and allowances are determined in consultation with the Appropriate Government.
Technical Experts Empanelment: Authority may engage consultants, forensic auditors, valuation experts, and chartered engineers to assist in forensic project scrutiny under Section 35.
Public Servant Status: All appointed officers and staff are deemed public servants within the meaning of Section 21 of the Indian Penal Code (Section 81 RERA).

Key Landmark Precedents:

Bikram Chatterji v. Union of India, (2019) 19 SCC 161: The Supreme Court validated the appointment of forensic auditors and court receivers to untangle diverted funds, demonstrating the necessity of expert staff under regulatory architectures.
MahaRERA v. Promoters Association, 2020 SCC OnLine MahaRERA 31: Affirmed that reports submitted by technical officers and empanelled structural engineers form valid primary evidence in Section 14 defect proceedings.

Courtroom Practice & Strategic Litigation Guidance:

When challenging developer claims regarding percentage of completion, file an application requesting the Authority to depute a technical officer or court commissioner under Section 27/35 for an on-site physical inspection.

Section 27: Restrictions on Chairperson or Members on employment after cessation of office

Section 27 of Real Estate (Regulation and Development) Act, 2016: Restrictions on Chairperson or Members on employment after cessation of office

Legal Commentary & Landmark Judgments: Section 27