The High Court of Karnataka on Monday ordered issue of notice to the Union and State governments on a batch of petitions filed by various co-operative housing societies (CHS) challenging the constitutional validity of making the provisions of the Real Estate (Regulation and Development) Act, 2016, applicable for the CHS.
Justice B.S. Patil passed the order on petitions filed by 14 prominent CHS, such as the State Government Employees’ House Building Cooperative Society, the Central Government Employees’ CHS, the Telecom Employees’ CHS, the Ministry of Communication Employees CHS, and the Bruhat Bengaluru Mahanagara Palike House Building Co-op Society.
The petitioner-CHS have mainly questioned the constitutional validity of Sections 3, 4 and 13 of the RERA, which imposes many “unreasonable” restrictions, including the retrospective application of the provisions of the Act, on the activities of the co-operative societies or co-operative housing societies.
Claiming that RERA has encroached upon their rights under the Karnataka Co-operative Societies Act-1959, the petitioners have contended it is in violation of Articles 14, 19, 21, 43 B and 243 Z of the Constitution in so far as the RERA seeks to cover co-operative societies, as the power for making legislation for cooperative societies is the exclusive jurisdiction conferred upon the State legislatures.
Application of RERA will also impact the ongoing projects of the CHS, the petitioners have claimed.
The petitioners have sought a declaration from the court that RERA is not applicable for the CHS, which are registered under the Karnataka Co-operative Societies Act.
Further hearing on the petitions was adjourned till August 11.