Section 82 RERA: Power of appropriate Government to supersede Authority

Section 82 of Real Estate (Regulation and Development) Act, 2016: Power of appropriate Government to supersede Authority

Official Bare Act Text

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

(1) If, at any time, the appropriate Government is of the opinion,--

(a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or

(b) that the Authority has persistently defaulted in complying with any direction given by the appropriate Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or

the appropriate Government may, by notification, supersede the Authority for such period, not exceeding six months, as may be specified in the notification and appoint a person or persons as the President or the Governor, as the case may be, may direct to exercise powers and discharge functions under this Act:

Provided that before issuing any such notification, the appropriate Government shall give a reasonable opportunity to the Authority to make representations against the proposed supersession and shall consider the representations, if any, of the Authority.

(2) Upon the publication of a notification under sub-section (1) superseding the Authority,--

(a) the Chairperson and other Members shall, as from the date of supersession, vacate their offices as such;

(b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by the person or persons referred to in sub-section (1); and

(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the appropriate Government.

(3) On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the appropriate Government shall reconstitute the Authority by a fresh appointment of its Chairperson and other members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for re-appointment.

(4) The appropriate Government shall cause a copy of the notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament or, as the case may be, before the State Legislature, or the Union Territory Legislature, as the case may be, where it consists of two Houses, or where such legislature consists of one House, before that House.

Legal Commentary & Landmark Judgments: Section 82

Section 82 empowers the Appropriate Government to supersede the Regulatory Authority in extreme circumstances of persistent default, public interest emergencies, or severe administrative paralysis.

Grounds for Supersession: Authority default in complying with government directions, persistent default in discharging duties, or circumstances rendering supersession necessary in public interest.
Maximum Six-Month Supersession: Supersession cannot exceed 6 months, during which all powers vest in an administrator appointed by the Government.
Mandatory Opportunity to Show Cause: Government must issue a show-cause notice and consider the Authority's representations prior to issuing a supersession order.
Legislative Accountability: Full report of supersession circumstances and action taken must be laid before the State Legislature.

Key Landmark Precedents:

State of M.P. v. Dharam Bir, (1998) 6 SCC 165: The Supreme Court held that supersession of a statutory autonomous body is an extraordinary power exercisable only in exceptional situations of total breakdown.
K.I. Shephard v. Union of India, (1987) 4 SCC 431: Reaffirmed that principles of natural justice apply rigorously before superseding public statutory entities.

Courtroom Practice & Strategic Litigation Guidance:

Supersession is a rare administrative weapon; pendency of individual allottee complaints or routine disposal delays do not constitute legal grounds for executive supersession under Section 82.

Section 82: Power of appropriate Government to supersede Authority

Section 82 of Real Estate (Regulation and Development) Act, 2016: Power of appropriate Government to supersede Authority

Legal Commentary & Landmark Judgments: Section 82