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Clause wise Note on The Real Estate (Regulation And Development) Bill, 2016’ As Passed By Rajya sabha on 10.03.2016.

Clause 1.—This clause relates to the short title, extent and commencement of the proposed legislation.

Clause 2.—This clause contains the definitions of various expressions used in the proposed legislation.

Clause 3.—This clause relates to the prior registration of real estate project with the Real Estate Regulatory Authority.

This clause provides that no promoter shall book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project, or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under the proposed legislation. However, no such registration shall be required where the area of land proposed to be developed does not exceed one thousand square meters or the number of apartments proposed to be developed does not exceed twelve or where the promoter has received all requisite approvals and the commencement certificate for the development of immovable property prior to commencement of the proposed legislation or for the purpose of renovation or repair or redevelopment which does not involve re-allotment and marketing of immovable property.

Clause 4.—This clause relates to the application to Authority.

Sub-clause (1) of this clause provides that every promoter shall make an application to the Authority for registration of the project in such form, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority.

Sub-clause (2) of this clause of the Bill provides the list of documents that the promoter is required to enclose along with the application for registration.

Clause 5.—This clause relates to the grant of registration.

Sub-clause (1) of this clause provides that the Authority shall within a period of fifteen days—(a) grant registration subject to the provisions of the proposed legislation and the rules and regulations made thereunder, and provide a registration number, including a Login Id and password to the applicant for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project; or (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the proposed legislation or the rules or regulations made thereunder.

Sub-clause (2) of this clause of the Bill provides that if the Authority fails to grant the registration or reject the application, as the case may be, as provided within the said fifteen days, the project shall be deemed to have been registered, and the Authority shall within two days of the expiry of the said fifteen days, provide a registration number and a Login Id and password to the promoter for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project.

Sub-clause (3) of this clause of the Bill provides that the registration granted under this clause shall be valid for a period declared by the promoter.

Clause 6.—This clause relates to the extension of registration.

This clause provides that the registration granted may be extended by the Authority on an application made by the promoter under such conditions as may be prescribed and in such form and on payment of such fee as may be specified by the regulations made by the Authority.

Clause 7.—This clause relates to the revocation of registration.

Sub-clause (1) of this clause provides that the Authority may on receipt of a complaint in this behalf or on the recommendation of the competent authority, revoke the registration granted after being satisfied that the promoter has made wilful default in doing anything required of him by or under the proposed legislation or the rules or the regulations made thereunder; the promoter has violated any of the terms or conditions of the approval given by the competent authority; the promoter is involved in any kind of unfair practice or irregularities.

Sub-clause (2) of this clause provides that the registration granted to the promoter under clause 5 shall not be revoked unless the Authority has given to the promoter not less than thirty days notice, in writing, stating the grounds on which it is proposed to revoke the registration, and has considered any cause shown by the promoter within the period of that notice against the proposed revocation.

Sub-clause (3) of this clause provides that the Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.

Sub-clause (4) of this clause provides that upon the revocation of the registration, the Authority,—(a) shall debar the promoter from accessing its website in relation to that project and specify his name in the list of defaulters on its website and also inform the other Real Estate Regulatory Authorities in other States and Union territories about such cancellation; (b) may recommend to the competent authority to facilitate the balance of the development works to be carried out in accordance with the provisions of clause 8; (c) may, to protect the interest of prospective buyers or in the public interest, issue such directions as it may deem necessary.

Clause 8.—This clause relates to the obligation of Authority consequent upon lapse of or revocation of registration.

This clause provides that upon lapse of the registration or on revocation of the registration under the proposed legislation, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority. However, that no direction, decision or order of the Authority under this clause shall take effect until the expiry of the period of appeal provided under the provisions of the proposed legislation.

Clause 9.—This clause relates to the registration of real estate agents.

Sub-clause (1) of this clause provides that no real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under the proposed legislation, being sold by the promoter in any planning area, without registering with the Authority.

Sub-clause (2) of this clause provides that the registration shall be in such form, manner, within such time and accompanied by such fee and documents as may be prescribed.

Sub-clause (3) of this clause provides that the Authority shall, within such period, in such manner and satisfying itself of the fulfillment of such conditions, as may be prescribed— (a) grant registration to the real estate agent; (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the proposed legislation or the rules or regulations made thereunder. However, no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

Sub-clause (4) of this clause provides that if on the completion of the period specified under sub-section (3), if the applicant does not receive any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.

Sub-clause (5) of this clause provides that every real estate agent who is registered as per the provisions of the proposed legislation or the rules and regulations made thereunder, shall be granted a registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him under the proposed legislation.

Sub-clause (6) of this clause provides that every registration shall be valid for such period as may be prescribed, and shall be renewable for a period in such manner and on payment of such fee as may be prescribed.

Sub-clause (7) of this clause provides that where any real estate agent who has been granted registration under the proposed legislation commits breach of any of the conditions thereof or any other terms and conditions specified under the proposed legislation or any rules or regulations made thereunder, or where the Authority is satisfied that such registration has been secured by the real estate agent through misrepresentation or fraud, the Authority may, without prejudice to any other provisions under the proposed legislation, revoke the registration or suspend the same for such period as it thinks fit. However, no such revocation or suspension shall be made by the Authority unless an opportunity of being heard has been given to the real estate agent.

Clause 10.—This clause relates to the functions of real estate agents.

This clause provides that every real estate agent registered under clause 9 shall— (a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being sold by the promoter in any planning area, which is not registered with the Authority; (b) maintain and preserve such books of account, records and documents as may be prescribed; (c) not involve himself in any unfair trade practices, namely:—(i) the practice of making any statement, whether orally or writing or by visible representation which—(A) falsely represents that the services are of a particular standard or grade; (B) represents that the promoter has approval or affiliation which such promoter does not have; (C) makes a false or misleading representation concerning the services; (ii) permitting the publication of any advertisement whether in any newspaper or otherwise of services that are not intended to be offered; (d) facilitate the possession of all documents, as the allottee is entitled to, at the time of booking of any plot, apartment or building, as the case may be; (e) discharge such other functions as may be prescribed.

Clause 11.— This clause relates to the functions and duties of promoter.

Sub-clause (1) of this clause provides that the promoter shall, upon receiving his Login-Id and password under clause (a) of sub-section (1) of clause 5 or under sub-section (2) of clause 5, as the case may be, create his web page on the website of the Authority and enter all details of the proposed project as provided under sub-section (2) of clause 4, in all the fields as provided, including those specified.

Sub-clause (2) of this clause provides that the advertisement or prospectus issued or published by the promoter shall mention prominently the website address of the Authority, wherein all details of the registered project have been entered and include the registration number obtained from the Authority and such other matters incidental thereto.

Sub-clause (3) of this clause provides that that the promoter, upon entering into an agreement of sale with the allottee shall be responsible to make available to the allottee information as specified.

Sub-clause (4) of this clause provides that the promoter shall—(a) be responsible to obtain a completion certificate from the relevant competent authority as per local laws or other laws for the time being in force and to make it available to the allottees individually or to the association of allottees, as the case may be; (b) be responsible for providing and maintaining the essential services, as may be specified in the service level agreements, on reasonable charges, till the taking over of the maintenance of the project by the association of the allottees; (c) take steps for the formation of an association or society or co-operative society, as the case may be, of the allottees, or a federation of the same, under the laws applicable.

Sub-clause (5) of this clause provides that the promoter may cancel the allotment only in terms of the agreement of sale. However, the allottee may approach the Authority for relief if he is aggrieved by such cancellation and such cancellation is not in accordance with the terms of the agreement of sale, unilateral and without any sufficient cause.

Clause 12.—This clause relates to the obligations of promoter regarding veracity of the advertisement or prospectus.

This clause provides that where any person makes an advance or a deposit on the basis of the information contained in the advertisement or prospectus and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under the proposed legislation. However, if the person affected by such incorrect, false statement contained in the advertisement or prospectus, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed.

Clause 13.—This clause relates to no deposit or advance to be taken by promoter without first entering into an agreement of sale.

Sub-clause (1) of this clause provides that a promoter shall not accept a sum more than ten per cent. of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person.

Sub-clause (2) of this clause provides that the agreement referred to in sub-section (1) shall be in such form as may be prescribed and specify the particulars of development of the project including the construction of building and apartments, along with specifications and external development works, the dates and the manner by which payments towards the cost of the apartment, plot, or building as the case may be, are to be made by the allottees and the likely date on which the possession of the apartment, plot, or building is to be handed over and such other particulars, as may be prescribed.

Clause 14.—This clause relates to the adherence to approved plans and project specifications by the promoter.

Sub-clause (1) of this clause provides that the proposed project shall be developed and completed by the promoter in accordance with the plans and structural designs and specifications as approved by the competent authorities.

Sub-clause (2) of this clause provides that in case any structural defect in such development is brought to the notice of the promoter within a period of two years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within reasonable time, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under the proposed legislation.

Clause 15.—This clause relates to the transfer of title.

Sub-clause (1) of this clause provides that the promoter shall take all necessary steps to execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas including the handing over of the possession of the plot, apartment or building, as the case may be, in a real estate project, and the other title documents pertaining thereto.

Sub-clause (2) of this clause provides that after obtaining the completion certificate and handing over physical possession to the allottees in terms of sub-section (1), it shall be the responsibility of the promoter to hand over the necessary documents and plans, including common areas, to the association of the allottees or the competent authority, as the case may be, as per the local laws.

Clause 16.—This clause relates to the return of amount and compensation.

Sub-clause (1) of this clause provides that if the promoter fails to complete or is unable to give possession of an apartment, plot or building,—(a) in accordance with the terms of the agreement or, as the case may be, duly completed by the date specified therein or any further date agreed to by the parties; or (b) due to discontinuance of his business as a developer on account of suspension or revocation of registration under the proposed legislation or for any other reason, he shall be liable on demand to the allottees, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, or building as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under the proposed legislation.

Sub-clause (2) of this clause provides that if the promoter fails to discharge any other obligations imposed on him under the proposed legislation or the rules or regulations made thereunder, he shall be liable to pay such compensation to the allottees, in the manner as provided under the proposed legislation.

Clause 17.—This clause relates to the rights and duties of allottees.

Sub-clause (1) of this clause provides that the allottee shall be entitled to obtain the information relating to site and layout plans along with the specifications, approved by the competent authority and such other information as provided in the proposed legislation or the rules and regulations made thereunder or the agreement signed with the promoter.

Sub-clause (2) of this clause provides that the allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation and electricity.

Sub-clause (3) of this clause provides that the allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, as per the declaration given by the promoter under sub- clause (c) of clause (i) of sub-section (2) of clause 4.

Sub-clause (4) of this clause provides that the allottee shall be entitled to claim the refund of amount paid, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement or due to discontinuance of his business as a developer on account of suspension or revocation of registration under the provisions of the proposed legislation or the rules or regulations made there under.

Sub-clause (5) of this clause provides that the allottee shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building as the case may be, to the allottee by the promoter.

Sub-clause (6) of this clause provides that every allottee, who has entered into an agreement of sale to take an apartment, plot or building as the case may be, under clause 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement and shall pay at the proper time and place, the proportionate share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any, in accordance with such agreement.

Sub-clause (7) of this clause provides that the allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-section (6).

Sub-clause (8) of this clause provides that the obligations of the allottee under sub­section (6) and the liability towards interest under sub-section (7) may be reduced when mutually agreed to between the promoter and such allottee.

Sub-clause (9) of this clause provides that every allottee after taking possession of the apartment, plot or building as the case may be, shall participate towards the formation of an association or society or co-operative society of the allottees, or a federation of the same.

Clause 18.—This clause relates to the establishment and incorporation of the Real Estate Regulatory Authority.

Sub-clause (1) of this clause provides the appropriate Government shall, within a period of one year from the date of coming into force of the proposed legislation, 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 the proposed legislation. However, the appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Authority, also if the appropriate Government deems fit, it may establish more than one Authority in a State or Union territory, as the case may be.

Clause 19.—This clause relates to the composition of the Authority.

This clause provides that the Authority shall consist of a Chairperson and not less than two whole-time Members to be appointed by the appropriate Government.

Clause 20.—This clause relates to the qualification of Chairperson and Members of Authority.

This clause provides that the Chairperson and other Members of the Authority shall be appointed by the appropriate Government on the recommendations of a Selection Committee consisting of such persons and in such manner as may be prescribed, from amongst persons having adequate knowledge of and professional experience of atleast twenty years in case of the Chairperson and fifteen years in the case of the Members in urban development, housing, real estate development, infrastructure, economics, planning, law, commerce, accountancy, industry, management, social service, public affairs or administration. However, that a person who is, or has been, in the service of the State Government shall not be appointed as a Chairperson unless such person has held the post of Additional Secretary to the Central Government or any equivalent post in the Central Government or in the State Government. It further provides that a person who is, or has been, in the service of the State Government shall not be appointed as a Member unless such person has held the post of Secretary to the State Government or any equivalent post in the State Government or in the Central Government.

Clause 21.—This clause relates to the term of office of Chairperson and Members.

Sub-clause (1) of this clause provides that the Chairperson and Members shall hold office for a term not exceeding five years from the date on which they enter upon their office, or until they attain the age of sixty-five years, whichever is earlier.

Sub-clause (2) of this clause provides that before appointing any person as a Chairperson or Member, the appropriate Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Chairperson or Member.

Clause 22.—This clause relates to the salary and allowances payable to Chairperson and Members.

Sub-clause (1) of this clause provides that the salary and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as may be prescribed and shall not be varied to their disadvantage during their tenure.

Clause 23.—This clause relates to the administrative powers of Chairperson.

This clause provides that the Chairperson shall have powers of general superintendence and directions in the conduct of the affairs of the Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such administrative powers and functions of the Authority as may be prescribed.

Clause 24.—This clause relates to the removal of Chairperson and Members from office in certain circumstances.

Sub-clause (1) of this clause provides that the appropriate Government may, by order, remove from office the Chairperson or other Members, if the Chairperson or such other Member, as the case may be,—(a) has been adjudged as an insolvent; or (b) has been convicted of an offence, involving moral turpitude; or (c) has become physically or mentally incapable of acting as a Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest.

Sub-clause (2) of this clause provides that no such Chairperson or Member shall be removed from his office under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.

Clause 25.—This clause relates to the restrictions on Chairperson or Members on employment after cessation of office.

Sub-clause (1) of this clause provides that 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 the proposed legislation from the date on which he ceases to hold office, except 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 in section 617 of the Companies Act, 1956; (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.

Sub-clause (2) of this clause provides that 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.

Clause 26.—This clause relates to the officers and other employees of the Authority.

Sub-clause (1) of this clause provides that the appropriate Government may, in consultation with the Authority appoint such officers and employees as it considers necessary for the efficient discharge of their functions under the proposed legislation who would discharge their functions under the general superintendence of the Chairperson.

Sub-clause (2) of this clause provides that the salary and allowances payable to, and the other terms and conditions of service of, the officers and of the employees of the Authority appointed under sub-section (1) shall be such as may be prescribed.

Clause 27.—This clause relates to the meetings of the Authority.

Sub-clause (1) of this clause provides that the Authority shall meet at such places and times, and shall follow such rules of procedure in regard to the transaction of business at its meetings, (including quorum at such meetings), as may be specified by the regulations made by the Authority.

Sub-clause (2) of this clause provides that if the Chairperson, if for any reason, is unable to attend a meeting of the Authority, any other Member chosen by the Members present amongst themselves at the meeting, shall preside at the meeting.

Sub-clause (3) of this clause provides that all questions which come up before any meeting of the Authority shall be decided by a majority of votes by the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote.

Clause 28.—This clause relates to the vacancies, etc., not to invalidate proceeding of the Authority.

This clause provides that no act or proceeding of the Authority shall be invalid merely by reason of—(a) any vacancy in, or any defect in the constitution of the Authority; or (b) any defect in the appointment of a person acting as a Member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case.

Clause 29.—This clause relates to the functions of Authority for promotion of real estate sector.

This clause provides that the Authority shall in order to facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector make recommendations to the appropriate Government or the competent authority as the case may be, on,—(a) protection of interest of the allottees and promoter; (b) measures to improve the processes and procedures for clearance and sanction of plans and development of projects; (c) measures to encourage construction of environmentally sustainable and affordable housing, promote standardisation including grading and use of appropriate construction materials, fixtures, fittings and construction techniques; (d) measures to facilitate amicable conciliation of disputes between the promoters and the allottees through dispute settlement forums set up by the consumer or promoter associations; (e) any other issue that the Authority may think necessary for the promotion of the real estate sector.

Clause 30.—This clause relates to the functions of the Authority.

This clause provides that the functions of the Authority shall, inter alia, include—(a) to render advice to the appropriate Government in matters relating to the development of real estate sector; (b) to publish and maintain a website of records of all real estate projects for which registration has been given, with such details as may be prescribed, including information provided in the application for which registration has been granted; (c) to maintain a database, on its website, and enter the names of promoters as defaulters including the project details, registration for which has been revoked or have been penalised under the proposed legislation, with reasons therefor, for access to the general public; (d) to maintain a database, on its website, and enter the names of real estate agents who have applied and registered under the proposed legislation, with such details as may be prescribed, including those whose registration has been rejected or revoked; (e) to fix through regulations for each areas under its jurisdiction the standard fees, to be levied on the allottees by the promoter or the association of allottees, as the case may be; (f) to ensure compliance of the obligations cast upon the promoters, the allottees and the real estate agents under the proposed legislation and the rules and regulations made thereunder; (g) to ensure compliance of its regulations or orders or directions made in exercise of its powers under the proposed legislation; (h) to perform such other functions as may be entrusted to the Authority by the appropriate Government as may be necessary to carry out the provisions of the proposed legislation.

Clause 31.—This clause relates to the powers of the Authority to call for information, conduct investigations.

Sub-clause (1) of this clause provides that where the Authority considers it expedient to do so, on a complaint relating to the proposed legislation or the rules or regulations made thereunder, it may, by order in writing and recording reasons therefor call upon any promoter or allottee or real estate agent, as the case may be, at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require and appoint one or more persons to make an inquiry in relation to the affairs of any promoter or allottee or the real estate agents, as the case may be.

Sub-clause (2) of this clause provides that notwithstanding anything contained in any other law for the time being in force, while exercising the powers under sub-section (1), the Authority shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit, in respect of the following matters, namely:– (i) the discovery and production of books of account and other documents, at such place and at such time as may be specified by the Authority; (ii) summoning and enforcing the attendance of persons and examining them on oath; (iii) issuing commissions for the examination of witnesses or documents; (iv) any other matter which may be prescribed.

Clause 32.—This clause relates to the powers of the Authority to issue directions.

This clause provides that the Authority may, for the purpose of discharging its functions under the provisions of the proposed legislation or the rules or the regulations made thereunder, issue such directions from time to time, to the promoters and allottees or real estate agents, as the case may be, as it may consider necessary and such directions shall be binding on all concerned.

Clause 33.—This clause relates to the powers of the Authority.

Sub-clause (1) of this clause provides that the Authority shall have powers to impose penalty or interest, in regard to any contravention of obligations cast upon the promoters, the allottees and the real estate agents, under the proposed legislation or the rules and the regulations made thereunder.

Sub-clause (2) of this clause provides that the Authority shall be guided by the principles of natural justice and, subject to the other provisions of the proposed legislation and the rules made thereunder, the Authority shall have powers to regulate its own procedure.

Sub-clause (3) of this clause provides that where an issue is raised relating to agreement, action, omission, practice or procedure that—(a) has an appreciable prevention, restriction or distortion of competition in connection with the development of a real estate project; or (b) has effect of market power of monopoly situation being abused for affecting interest of allottees adversely, then the Authority, may, suo motu, make reference in respect of such issue to the Competition Commission of India.

Clause 34.—This clause relates to the recovery of interest or penalty or compensation.

This clause provides that if a promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him under the proposed legislation, it shall be recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed.

Clause 35.—This clause relates to the establishment of Central Advisory Council.

Sub-clause (1) of this clause provides that the Central Government may, by notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Advisory Council.

Sub-clause (2) of this clause provides that the Minister to the Government of India in charge of the Ministry of the Central Government dealing with housing shall be the ex officio Chairperson of the Central Advisory Council.

Sub-clause (3) of this clause provides that the Central Advisory Council shall consist of representatives of the Ministry of Finance, Ministry of Industry and Commerce, Ministry of Urban Development, Ministry of Consumer Affairs, Ministry of Corporate Affairs, Ministry of Law and Justice, Planning Commission, National Housing Bank, Housing and Urban Development Corporation, five representatives of State Governments to be selected by rotation, five representatives of the Real Estate Regulatory Authorities to be selected by rotation, and any other Central Government department as notified.

Sub-clause (4) of this clause provides that the Central Advisory Council shall also consist of not more than ten members to represent the interests of real estate industry, consumers, construction labourers, non-governmental organisations and academic and research bodies in the real estate sector.

Clause 36.–– This clause relates to the functions of the Central Advisory Council.

Sub-clause (1) of this clause provides that the functions of the Central Advisory Council shall be to advise and recommend the Central Government:—(a) on all matters concerning the implementation of the proposed legislation; (b) on major questions of policy; (c) towards protection of consumer interest; (d) to foster the growth and development of the real estate sector; (e) on any other matter as may be assigned to it by the Central Government.

Sub-clause (2) of this clause provides that the Central Government may specify the rules to give effect to the recommendations of the Central Advisory Council on matters as provided under sub-section (1).

Clause 37.—This clause relates to the establishment of Real Estate Appellate Tribunal.

Sub-clause (1) of this clause provides that the appropriate Government shall, within a period of one year from the date of coming into force of the proposed legislation, by notification, establish an Appellate Tribunal to be known as the –– (State/Union territory) Real Estate Appellate Tribunal. However, the appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Appellate Tribunal.

Sub-clause (2) of this clause provides that any person aggrieved by any direction or decision or order made by the Authority or by an adjudicating officer under the proposed legislation may prefer an appeal before the Appellate Tribunal which shall have jurisdiction over the matter.

Clause 38.—This clause relates to the application for settlement of disputes and appeals to Appellate Tribunal.

Sub-clause (1) of this clause provides that the appropriate Government or the competent authority or any person aggrieved by any direction or order or decision of the Authority or the adjudicating officer may prefer an appeal to the Appellate Tribunal.

Sub-clause (2) of this clause provides that every appeal made under sub-section (1) shall be preferred within a period of sixty days from the date on which a copy of any direction or decision or order made by the Authority is received by the appropriate Government or the competent authority or the aggrieved person and it shall be in such form, and accompanied by such fee as may be prescribed. However, the Appellate Tribunal may entertain any appeal after the expiry of sixty days if it is satisfied that there was sufficient cause for not filing it within that period.

Sub-clause (3) of this clause provides that on receipt of an appeal under sub-section (1), the Appellate Tribunal may after giving the parties an opportunity of being heard, pass such orders as it thinks fit.

Sub-clause (4) of this clause provides that the Appellate Tribunal shall send a copy of every order made by it to the parties and to the Authority or the adjudicating officer, as the case may be.

Sub-clause (5) of this clause provides that the appeal preferred under sub-section (1), shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal within a period of ninety days from the date of receipt of appeal. However, where any such appeal could not be disposed of within the said period of ninety days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within that period.

Sub-clause (6) of this clause provides that the Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness of any order or decision of the Authority or the adjudicating officer, on its own motion or otherwise, call for the records relevant to disposing of such appeal and make such orders as it thinks fit.

Clause 39.—This clause relates to the composition of the Appellate Tribunal.

This clause provides that the Appellate Tribunal shall consist of a Chairperson and two other Members of which one shall be a Judicial Member and other shall be a Technical or Administrative Member, to be appointed by the appropriate Government.

Clause 40.—This clause relates to the qualifications for appointment of Chairperson and Members.

Sub-clause (1) of this clause provides that a person shall not be qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless he,—(a) in the case of Chairperson, is or has been a Judge of the High Court; and (b) in the case of a Judicial Member he has held a judicial office in the territory of India for at least seven years or has been a Member of the Indian Legal Service and has held the post in Grade I of that service or any equivalent post for at least three years, or has been an advocate for at least fifteen years with experience in dealing with real estate matters; and (c) in the case of a Technical or Administrative Member he is a person who is well versed in the field of urban development, housing, real estate development, infrastructure, economics, planning, law, commerce, accountancy, industry, management, public affairs or administration and possesses experience of at least fifteen years in the field or who has held the post in the Central Government or a State Government equivalent to the post of Joint Secretary to the Government of India or an equivalent post in the Central Government or an equivalent post in the State Government.

Sub-clause (2) of this clause provides that the Chairperson of the Appellate Tribunal shall be appointed by the appropriate Government in consultation with the Chief Justice of High Court or his nominee.

Sub-clause (3) of this clause provides that the Judicial Members and Technical or Administrative Members of the Appellate Tribunal shall be appointed by the appropriate Government on the recommendations of a Selection Committee consisting of such persons and in such manner as may be prescribed.

Clause 41.—This clause relates to the term of office of Chairperson and Members.

Sub-clause (1) of this clause provides that the Chairperson of the Appellate Tribunal or a member of the Appellate Tribunal shall hold office as such for a term not exceeding five years from the date on which he enters upon his office, but shall not be eligible for re-appointment. However, in case a person, who is or has been a Judge of a High Court, has been appointed as Chairperson of the Tribunal, he shall not hold office after he has attained the age of sixty-seven years. Also, no Judicial Member or Technical or Administrative Member shall hold office after he has attained the age of sixty-five years.

Sub-clause (2) of this clause provides that before appointing any person as Chairperson or Member, the appropriate Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such member.

Clause 42.—This clause relates to the salary and allowances payable to Chairperson and Members.

This clause provides that the salary and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as may be prescribed and shall not be varied to their disadvantage during their tenure.

Clause 43.—This clause relates to the removal of Chairperson and Member from office in certain circumstances.

Sub-clause (1) of this clause provides that the appropriate Government may, in consultation with the Chief Justice of the High Court, remove from office of the Chairperson or any Judicial Member of the Appellate Tribunal, who – (a) has been adjudged as an insolvent; or (b) has been convicted of an offence which, in the opinion of the appropriate Government involves moral turpitude; or (c) has become physically or mentally incapable; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest.

Sub-clause (2) of this clause provides that the Chairperson or Judicial Member shall not be removed from his office except by an order made by the appropriate Government after an inquiry made by Judge of the High Court in which such Chairperson or Judicial Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.

Sub-clause (3) of this clause provides that the appropriate Government may suspend from the office of the Chairperson or Judicial Member in respect of whom a reference of conducting an inquiry has been made to the Judge of the High Court under sub-section (2), until the appropriate Government passes an order on receipt of the report of inquiry made by the Judge of the High Court on such reference.

Sub-clause (4) of this clause provides that the appropriate Government may, by rules, regulate the procedure for inquiry referred to in sub-section (2).

Sub-clause (5) of this clause provides that the Technical or Administrative Member may be removed from his office by an order of the appropriate Government on the grounds specified in sub-section (1) and in accordance with the procedure notified by the appropriate Government.

Clause 44.—This clause relates to the officers and other employees of the Appellate Tribunal.

Sub-clause (1) of this clause provides that the appropriate Government shall provide the Appellate Tribunal with such officers and employees as, it may deem fit.

Sub-clause (2) of this clause provides that the officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of its Chairperson.

Sub-clause (3) of this clause provides that salary and allowances payable to, and the terms and other conditions of service of the officers and employees of the Appellate Tribunal shall be such as may be prescribed.

Clause 45.—This clause relates to the vacancies.

This clause provides that if, for reason other than temporary absence, any vacancy occurs in the office of the Chairperson or a Member of the Appellate Tribunal, the appropriate Government shall appoint another person in accordance with the provisions of the proposed legislation to fill the vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at which the vacancy is filled.

Clause 46.—This clause relates to the powers of Tribunal.

Sub-clause (1) of this clause provides that the Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 but shall be guided by the principles of natural justice.

Sub-clause (2) of this clause provides that subject to the provisions of the proposed legislation, the Appellate Tribunal shall have power to regulate its own procedure.

Sub-clause (3) of this clause provides that the Appellate Tribunal shall also not be bound by the rules of evidence contained in the Indian Evidence Act, 1872.

Sub-clause (4) of this clause provides that the Appellate Tribunal shall have, for the purpose of discharging its functions under the proposed legislation, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 in respect of the following matters, namely:—(a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or directing it ex-parte; and (h) any other matter which may be prescribed.

Sub-clause (5) of this clause provides that all proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193, 219 and 228 for the purposes of section 196 of the Indian Penal Code, and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

Clause 47.—This clause relates to the administrative powers of Chairperson of the Appellate Tribunal.

This clause provides that the Chairperson shall have powers of general superintendence and direction in the conduct of the affairs of the Appellate Tribunal and he shall, in addition to presiding over the meetings of the Appellate Tribunal, exercise and discharge such administrative powers and functions of the Appellate Tribunal as may be prescribed.

Clause 48.—This clause relates to the right to legal representation.

This clause provides that the applicant or appellant may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal.

Clause 49.—This clause relates to the orders passed by the Appellate Tribunal to be executable as a decree.

Sub-clause (1) of this clause provides that every order made by the Appellate Tribunal under the proposed legislation shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court.

Sub-clause (2) of this clause provides that notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court.

Clause 50.—This clause relates to the appeal to High Court.

Sub-clause (1) of this clause provides that any person aggrieved by any decision or order of the Appellate Tribunal, may, file an appeal to the High Court, within a period of ninety days from the date of communication of the decision or order of the Appellate Tribunal, to him, on anyone or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908. However, the High Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.

Sub-clause (2) of this clause provides that no appeal shall lie against any decision or order made by the Appellate Tribunal with the consent of the parties.

Clause 51.—This clause relates to the punishment for non-registration under clause 3.

Sub-clause (1) of this clause provides that if any promoter contravenes the provisions of clause 3, he shall be liable to a penalty which may extend upto ten per cent. of the estimated cost of the real estate project as determined by the Authority.

Sub-clause (2) of this clause provides that if any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of clause 3, he shall be punishable with imprisonment for a term which may extend upto three years or with fine which may extend to a further ten per cent. of the estimated cost of the real estate project, or with both.

Clause 52.—This clause relates to the penalty for contravention of clause 4.

This clause provides that if any promoter knowingly provides false information or contravenes the provisions of clause 4, he shall be liable to a penalty which may extend upto five per cent. of the estimated cost of the real estate project as determined by the Authority.

Clause 53.—This clause relates to the penalty for contravention of other provisions of the Act.

This clause provides that if any promoter contravenes any other provisions of the proposed legislation, other than that provided under clause 3 or clause 4, or the rules or regulations made thereunder, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project as determined by the Authority.

Clause 54.—This clause relates to the penalty for non-registration and contravention under clauses 9 and 10.

This clause provides that if any real estate agent wilfully fails to comply with or contravenes the provisions of clause 9 or clause 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent. of the cost of immovable property, for which the sale or purchase has been facilitated as determined by the Authority.

Clause 55.—This clause relates to the penalty for wilful failure to comply with orders of the Authority by Promoter.

This clause provides that if any promoter, who wilfully fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent. of the estimated cost of the real estate project as determined by the Authority.

Clause 56.—This clause relates to the penalty for wilful failure to comply with orders of Appellate Tribunal by Promoter.

This clause provides that if any promoter, who wilfully fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of the real estate project as determined by the Appellate Tribunal.

Clause 57.—This clause relates to the penalty for wilful failure to comply with orders of the Authority by allottee.

This clause provides that if any allottee, who wilfully fails to comply with, or contravenes any of the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to five per cent. of the apartment cost as determined by the Authority.

Clause 58.—This clause relates to the penalty for wilful failure to comply with orders of Appellate Tribunal by allottee.

This clause provides that if any allottee, who wilfully fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to ten per cent. of the apartment cost as determined by the Appellate Tribunal.

Clause 59.—This clause relates to the offences by Companies.

Sub-clause (1) of this clause provides that where an offence under the proposed legislation has been committed by a company, every person who, at the time the offence was committed was in charge of, or was responsible to the company for the conduct of, the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. However, nothing contained in this sub-section, shall render any such person liable to any punishment under the proposed legislation if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

Sub-clause (2) of this clause provides that notwithstanding anything contained in sub-section (1), where an offence under the proposed legislation has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Clause 60.—This clause relates to the compounding of offences.

This clause provides that notwithstanding anything contained in the Code of Criminal Procedure, 1973, the offence punishable under clause 51 of the proposed legislation may, either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed. However, the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded.

Clause 61.—This clause relates to the power to adjudicate.

Sub-clause (1) of this clause provides that for the purpose of adjudging compensation under clauses 12, 14 and 16 the Authority shall appoint any officer not below the rank of Joint Secretary to the State Government to be an adjudicating officer for holding an inquiry in the prescribed manner, after giving any person concerned a reasonable opportunity of being heard. However, if any person whose complaint, in respect of matters covered under clauses 12, 14 and 16 is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, 1986, on or before the commencement of the proposed legislation, he may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending before it and file an application before the adjudicating officer under the proposed legislation.

Sub-clause (2) of this clause provides that the application for adjudging compensation under sub-section (1), shall be dealt with by the adjudicating officer as expeditiously as possible and dispose of the same within a period of ninety days from the date of receipt of such application. However, where any such application could not be disposed of within the said period of ninety days, the adjudicating officer shall record his reasons in writing for not disposing of the application within that period.

Sub-clause (3) of this clause provides that while holding an inquiry the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), he may direct to pay such compensation or interest, as the case may be, as he thinks fit in accordance with the provisions of any of those sections.

Clause 62.—This clause relates to the factors to be taken into account by the adjudicating officer.

This clause provides that while adjudging the quantum of compensation or interest, as the case may be, under section 61, the adjudicating officer shall have due regard to the following factors, namely:– (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused as a result of the default; (c) the repetitive nature of the default.

Clause 63.—This clause relates to the grants and loans by the Central Government.

This clause provides that the Central Government may, after due appropriation made by Parliament in this behalf, make to the Authority grants and loans of such sums of money as that Government may consider necessary.

Clause 64.—This clause relates to the grants and loans by the State Government.

This clause provides that the State Government may, after due appropriation made by State Legislature by law in this behalf, make to the Authority, grants and loans of such sums of money as the State Government may think fit for being utilised for the purposes of the proposed legislation.

Clause 65.—This clause relates to the Constitution of Fund.

Sub-clause (1) of this clause provides that the appropriate Government shall constitute a fund to be called the “Real Estate Fund” and there shall be credited thereto—(a) all Government grants received by the Authority; (b) the fees received under the proposed legislation; (c) the interest accrued on the amounts referred to in clauses (a) to (b).

Sub-clause (2) of this clause provides that the Fund shall be applied for meeting – (a) the salaries and allowances payable to the Chairperson and other Members and the administrative expenses including the salaries and allowances payable to the officers and other employees of the Authority and the Appellate Tribunal; (b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of the proposed legislation.

Sub-clause (3) of this clause provides that the Fund shall be administered by a committee of such Members of the Authority as may be determined by the Chairperson.

Sub-clause (4) of this clause provides that the committee appointed under sub-section (3) shall spend monies out of the Fund for carrying out the objects for which the Fund has been constituted.

Clause 66.––This clause relates to the crediting sums realised by way of penalties to Consolidated Fund of India or State account.

Sub-clause (1) of this clause provides that all sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in the Union territories, shall be credited to the Consolidated Fund of India.

Sub-clause (2) of this clause provides that all sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in a State, shall be credited to such account as the State Government may specify.

Clause 67.—This clause relates to the budget, accounts and audit.

Sub-clause (1) of this clause provides that the Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the appropriate Government in consultation with the Comptroller and Auditor-General of India.

Sub-clause (2) of this clause provides that the accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India.

Sub-clause (3) of this clause provides that the Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Authority under the proposed legislation shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has in connection with the audit of Government accounts and, in particular shall have the right to demand and production of books, accounts, connected vouchers and other documents and papers, and to inspect any of the offices of the Authority.

Sub-clause (4) of this clause provides that the accounts of the Authority, as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the appropriate Government by the Authority and the appropriate Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament or, as the case may be, before the State Legislature or the Union territory Legislature, where it consists of two Houses, or where such legislature consists of one House, before that House.

Clause 68.—This clause relates to the annual report.

Sub-clause (1) of this clause provides that the Authority shall prepare once in every year, in such form and at such time as may be prescribed by the appropriate Government— (a) a description of all the activities of the Authority for the previous year; (b) the annual accounts for the previous year; and (c) the programmes of work for the coming year.

Sub-clause (2) of this clause provides that a copy of the report received under sub­section (1) shall be laid, as soon as may be after it is received, before each House of Parliament or, as the case may be, before the State Legislature or the Union territory Legislature, where it consists of two Houses, or where such legislature consists of one House, before that House.

Clause 69.—This clause relates to the bar of jurisdiction.

This clause provides that no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under the proposed legislation to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under the proposed legislation.

Clause 70.—This clause relates to the delegation.

This clause provides that the Authority may, by general or special order in writing, delegate to any member, officer of the Authority or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under the proposed legislation (except the power to make regulations under clause 74) as it may deem necessary.

Clause 71.—This clause relates to the power of appropriate Government to supersede the Authority.

Sub-clause (1) of this clause provides that 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 the proposed legislation; or (b) that the Authority has persistently defaulted in complying with any direction given by the appropriate Government under the proposed legislation or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of the proposed legislation and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or (c) that circumstances exist which render it necessary in the public interest so to do; 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 the proposed legislation. However, 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.

Sub-clause (2) of this clause provides that 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 the proposed legislation, 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.

Sub-clause (3) of this clause provides that 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.

Sub-clause (4) of this clause provides that 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 clause 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.

Clause 72.—This clause relates to the powers of appropriate Government to issue directions to the Authority and obtain reports and returns.

Sub-clause (1) of this clause provides that without prejudice to the foregoing provisions of the proposed legislation, the Authority shall, in exercise of its powers and in performance of its functions under the proposed legislation, be bound by such directions on questions of policy, as the appropriate Government may give in writing to it from time to time. However, the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.

Sub-clause (2) of this clause provides that if any dispute arises between the appropriate Government and the Authority as to whether a question is or is not a question of policy, the decision of the appropriate Government thereon shall be final.

Sub-clause (3) of this clause provides that the Authority shall furnish to the appropriate Government such returns or other information with respect to its activities as the appropriate Government may, from time to time, require.

Clause 73.—This clause relates to the power of appropriate Government to make rules.

This clause empowers the appropriate Government to make rules for carrying out the provisions of the proposed legislation.

Clause 74.—This clause relates to the power to make regulations.

This clause empowers the Authority to make regulations for carrying out the provisions of the proposed legislation.

Clause 75.—This clause relates to the laying of rules.

This clause provides that every rule, regulation and notification made under the proposed legislation shall be laid, as soon as may be after it is made, before the House of Parliament or State Legislature, as the case may be.

Clause 76.—This clause relates to the Members, etc., to be public servants.

This clause provides that the Chairperson, Members and other officers and employees of the Authority and the Appellate Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

Clause 77.—This clause relates to the application of other laws not barred.

This clause provides that the provisions of the proposed legislation shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.

Clause 78.—This clause relates to the act to have overriding effect.

This clause provides that the provisions of the proposed legislation shall have effect notwithstanding anything inconsistent therein contained in any other law for the time being in force. However, where a State has enacted a law for regulation of the real estate sector, and such State law is not inconsistent with the proposed legislation, then, the State Government, to that extent, may not apply the provisions of the proposed legislation in the State.

Clause 79.—This clause relates to the protection of action taken in good faith.

This clause provides that no prosecution or other legal proceedings can be instituted against the appropriate Government or the Authority or any of their officers, etc., for anything done in good faith under the proposed legislation or the rules or regulations made thereunder.

Clause 80.—This clause relates to power to remove difficulties.

Sub-clause (1) of this clause provides that if any difficulty arises in giving effect to the provisions of the proposed legislation, the Central Government may make provisions, by order, published in the Official Gazette, for removing the difficulty. These orders must be consistent with the provisions of the proposed legislation. However, no order shall be made under this clause after the expiry of two years from the commencement of the proposed legislation.

Sub-clause (2) of this clause provides that every order made under this clause shall be laid, as soon as may be after it is made, before each House of Parliament.

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