State Government ordered to provide financial autonomy to Real Estate Appellate Tribunal from regulatory fund

HC directed State Government to provide financial autonomy to Odisha Real Estate Appellate Tribunal by allocating funds from Real Estate Regulatory Fund with separate budgetary provisions. Court found State's apathetic attitude in not making statutory tribunal functional amounted to obstructing administration of justice under Real Estate (Regulation and Development) Act, 2016. Petitioners' grievances regarding non-functioning tribunal causing difficulties in appeal process were addressed through mandating proper establishment of appellate forum with independent financial management for smooth operation.

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Issues Involved:

1. Non-functioning of the Real Estate Appellate Tribunal.
2. Financial autonomy and allocation of funds for the Tribunal.
3. Absorption and deployment of staff for the Tribunal.
4. Establishment and operationalization of the Tribunal's infrastructure.

Detailed Analysis:

1. Non-functioning of the Real Estate Appellate Tribunal:

The core issue across the writ petitions is the non-functioning of the Real Estate Appellate Tribunal, which has resulted in significant difficulties for litigants. The Tribunal, established under the Real Estate (Regulation and Development) Act, 2016, is intended to hear appeals from the Real Estate Regulatory Authority. Despite the appointment of a Chairperson and Members, the Tribunal has not been operational due to various administrative and logistical challenges. The Court noted that the non-functioning of the Tribunal has left parties without a remedy, as appeals cannot be processed, leading to a backlog and hindrance in the administration of justice.

2. Financial Autonomy and Allocation of Funds for the Tribunal:

The judgment emphasizes the need for financial autonomy for the Real Estate Appellate Tribunal. The Court directed the State Government to allocate funds from the Real Estate Regulatory Fund, ensuring separate budgetary provisions and heads of account for the Tribunal. This financial independence is crucial for the Tribunal to manage its operations effectively and fulfill its statutory duties. The Court highlighted that both RERA and the Tribunal are independent entities and should be funded separately to maintain their autonomy and efficiency.

3. Absorption and Deployment of Staff for the Tribunal:

The judgment addresses the deployment of staff from the erstwhile Odisha Administrative Tribunal to the Real Estate Appellate Tribunal. The Court directed that these employees be absorbed into the Tribunal's cadre, with their salaries and benefits paid from the allocated funds. The establishment of permanent posts and restructuring of the staffing pattern were also discussed, with instructions to expedite these processes to ensure the Tribunal's smooth functioning.

4. Establishment and Operationalization of the Tribunal's Infrastructure:

The Court noted the need for adequate infrastructure to make the Tribunal operational. Temporary and permanent office spaces have been identified, with ongoing renovation work. The Court ordered the State Government to expedite the completion of these facilities, ensuring that the Tribunal can function effectively. The judgment stressed the importance of logistical support, including office supplies and maintenance services, to facilitate the Tribunal's operations.

Conclusion:

The Court issued several directives to the State Government to address the issues hindering the Tribunal's functionality. These include granting financial autonomy, absorbing staff, creating permanent posts, and expediting infrastructure development. The judgment underscores the importance of an operational Real Estate Appellate Tribunal in ensuring justice for litigants in the real estate sector. Failure to comply with these directives within the stipulated timeframe may result in contempt proceedings. The interim orders in related writ petitions will continue until the Tribunal is fully functional.

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