Real Estate Regulatory Bill 2016 (Regulation and Development), was passed in the Upper House, the Rajya Sabha, on 10 March, Lok Sabha passed it on 15 March. The Bill that solicits to protect home buyers as well as incourage investments in the real estate industry has been passed with 20 major amendments that have been approved by the Union Cabinet.

These amendments are based on the suggestions of a Rajya Sabha committee that was endorsed to examine Real Estate Regulatory Bill that was pending in the Rajya Sabha.

To ensure timely execution of projects (the Real Estate Regulatory Bill has paved the way for setting up of a Real Estate Regulatory Authorities (RERAs).

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The Real Estate Regulatory Bill caters for mandatory registration of all projects with the Real Estate Regulation Authority in each state. Now projects on at least 500 sq metres of area or with eight flats are to registered with the recommended regulatory authority; earlier the area was 1000 sq metres. This amendment has brought a larger number of projects under the regulator’s range. Through, this amendment the Government has also tried to make it clear that the Bill aims at establishing regulatory body for transparent business.

Real estate agents who contemplate to sell any apartment, building or plot have to register themselves with the regulatory authority. Now builders have to deposit 70% of the sale proceeds, that comprises of land cost, in a security account to meet construction cost; earlier proposal for the same was 50% or less. And now they have to pay interest to home buyers for any defalcation or delays at the same rate they charge the buyers. Builders are going to be accountable for structural defects for five years; earlier proposal concerning the time frame was of two years.

Under the new proposal carpet area has been clearly defined as usable places like kitchen and toilets have been included in the definition. Garage has been kept out of the compass of the definition of apartment. Formation of residents association within three months of the allotment of a majority of units in a project has been made compulsory.

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Although the Real Estate Regulatory Bill has authorized the regulatory authorities to hear and act the consumers’ complaints, it also permits the aggrieved consumers to approach consumer courts at the district level. The regulatory bodies will mostly be located in the state capitals.

It has been made mandatory for the Appellate Tribunals to adjudicate cases in 60 days; earlier proposal concerning the time- frame was of 90 days. Regulatory Authorities have to dispose of complaints in 60 days; in the earlier proposal there was no time frame.

According to the Real Estate Regulatory Bill there will be an imprisonment of up to three years in the case of promoters and up to one years in the case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary fines or both.

The Government, earlier in December 2014, had brought commercial real estate projects under the compass of the Bill, made the conditions of the Bill applicable to all projects in which sales were still in progress and put in place a system that would consent of two thirds of buyers for changing project plans.

The amended and revisedReal Estate Regulatory Bill comprises an empowering provision for arranging insurance of land title, that is at present not available. This provision is going to benefit buyers and sellers in situations where the title of the land becomes invalid.

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The doctrine of Rule of law is the building block of justice delivery system in any democratic society. Laws are part and parcel of any country’s polity. It promotes peace and harmony among the citizens thus ensuring the smooth and rapid development of the society.

The principle of Rule of Law is intended to safeguard an individual interest against any arbitrary action of the government authorities. It promotes equality thus eliminating any discrimination on the grounds of race, religion, status, caste, sex, place of birth etc.

In other words, it means that Law is supreme and is above any individual (either ruler or the ruled).

Origin of Rule of Law

The concept of Rule of Law is very old. Its origin can be traced back to the thirteenth century France, when a judge in the reign of Henry III, wrote:  “The king himself ought to be subject to God and the law because the law makes him king.”

But the actual credit in popularizing the doctrine of ”Rule of Law” goes to British jurist A.V. Dicey who in his classical book “Introduction to the Study of the Law of the Constitution“ published in 1885 tried defining this concept.

According to Dicey, Rule of law consists of 3 components:

1. Supremacy of Law: According to this principle, a man can only be punished if he violates the law of the land and the punishment can only be based on rule of law. In other words, there is nothing called arbitrary power or discretionary power.
2. Equality before the law: According to it, all classes of people are subjected equally to the ordinary law of the land. That means, no man is above the law. Every Official of the Government just like a normal citizen has to obey the same law and there can be no special courts or special treatment for them.
3. Predominance of Legal spirit: It means that the Constitution is not the source but the consequence of the rights of the individuals.

Rule of Law and India

In India, the Constitution is the source of the individual rights instead of the other way round, as was suggested by Justice A.V. Dicey. That means Predominance of Legal spirit is not a part of Indian “Rule of Law”.

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Fundamental Rights, Detailed Analysis Part I

Fundamental Rights, Detailed Analysis Part 2

Chapter two of Part- VI of the Constitution of India declares the existence of post of a Governor through its Article 153 that pens down: “There shall be a Governor of each state”.

Qualification, Appointment, and Term of the Office

Articles 157 and 158 deal with qualification and conditions for entering the Governor’s office.

According to Article 157 a person, who is a citizen of India and has attained the age of 35 years, is qualified for holding the post.

It becomes when one goes through Article 158, clear that there are many conditions that a Governor has to accept to become or hold the office.

These conditions are:

A person, who is a member of either House of Parliament or of a House of Legislature of any State Specified in the first schedule, cannot become a Governor, says Article 158. The Article further says, ‘if a member of either House of Parliament or of a House of the Legislature of such State be appointed Governor, he shall be deemed to have vacated his seat in that House on the date on which he enters upon his office as Governor’ (clause 1 Article 158). Clause 2 of the Article 158, in a single sentence, makes it clear that a Governor cannot hold any other office of profit.

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The Appointment and Term

On the appointment of an Executive head of the State, the Article 155 states rather plainly that “The Governor shall be appointed by the President by warrant under his hand and seal”. On the term of the office of Governor the Article 156 states that he shall hold the of the during the pleasure of President (clause 1); he can resign by sending a resignation letter, under his hand, to the President (clause 2); he holds his office for a term of five years from the date he enters upon his office (clause 3).

The clause-3 also states that the Governor, even after expiration of his term, will continue to hold the office till his successor enters upon the office.

Powers of a Governor

A Governor of a state has three types of powers:

1. Executive power
2. Legislative power
3. Emergency power

Executive Power

The Constitution of India, through its Article 154, has made the Governor the head of the State Executive. Clause 1 of Article 154 states, “The executive power of the State shall be vested in the Governor and shall be exercised by him either directly or through offices subordinate to him in accordance with this Constitution”.

One thing becomes crystal clear that through this clause the Constitution emphasizes the Supreme Power of the Constitution of India; it says at the last of the clause 1 of the Article 154 that the Governor has to apply and use his power as an Executive head of a State in ‘accordance with the Constitution’. So a Governor cannot act arbitrarily. He has to follow the rules set by the Constitution.

The power to grant pardons, etc. comes within the ambit of the Executive Powers conferred through Article 161 that, while dealing with these powers, states that the Governor of a State has got the power to grant pardons, reprieves or remissions of punishment or to suspend, remit or continue the sentence of any person convicted of any offence against any law relating to a matter to which the executive power of state extends.

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Legislative Power

Apart from having the right to address and send messages, and summon, prorogue and dissolve the State Legislature, according to Article 202, the Governor has the power to ask for the annual financial statement to be laid before the State Legislature: Article 207 puts forward the Governor’s power of making demands for grant and recommending “Money Bill”.

Governor’s Power of Veto

When a Bill, after being passed by the House of Legislature, is presented to the Governor, he may grant his assent to the Bill, making the Bill a Law; or he may withhold his assent, causing the Bill to fail in becoming a Law; or, he may return the Bill with a message, it the Bill is not a Money Bill.

Emergency Power

Article 356 empowers the Executive head of the State to send a report to the President, if he becomes satisfied that a situation has emerged in which the State Government cannot function in accordance with the provisions of the Constitution, thus inviting the President to assume himself the functions of the State Government. This is generally termed as President’s Rule.

It is important here to mention that clause 4 of Article 356 States that a proclamation (of President’s Rule) ‘so approved shall, unless revoked, cease to operate on the expiration of a period of six months’.

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Governor Generals and Viceroys of India

National Human Rights Commission (NHRC)