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Fallout & Reasons Behind Himachal Govt's Move To Amend RERA Selection Mechanism: A Turning Point In Regulatory Governance

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The decision of the Himachal Pradesh government to amend the Real Estate Regulatory Authority (RERA) Act and replace the Chief Justice of the High Court with the Chief Secretary as Chairperson of the selection panel marks a turning point in regulatory governance.

What unfolded in the Vidhan Sabha was more than a routine legislative amendment; it was an assertion of executive authority over an institution originally designed to operate with a degree of judicial insulation. The political, institutional and legal ramifications of this move are likely to widen in the coming weeks, as both intent and impact come under sharper scrutiny.

National implications and a possible domino effect

The fallout of the Himachal government’s amendment is unlikely to remain confined to one state; it has the potential to ripple across India’s federal landscape. Several states are already grappling with an uneasy power balance between judicial oversight and the executive’s expanding ambitions in regulatory bodies — particularly in high-stakes sectors such as real estate, mining, energy and infrastructure.

If the “Himachal model” succeeds — where the selection committee is steered by the bureaucracy without any judicial presence — other states may feel encouraged to replicate the move under the banner of “administrative efficiency”. Given the competitive nature of Indian federalism, where political rivals often mirror each other’s methods, it is not difficult to imagine a situation in which opposition-ruled states adopt similar amendments.

Such parallel power shifts would inevitably intensify confrontations with NDA-appointed Governors across the country, further sharpening Centre–State friction and putting the autonomy of regulatory institutions under heightened strain.

Government’s Justification and Administrative Logic

The ruling establishment has defended the amendment on the grounds of administrative practicality and constitutional permissibility. Chief Minister, Sukhvinder Singh Sukhu maintained that RERA comes under the Concurrent List, allowing states to enact modifications based on local needs.

The logic projected by the government is that real estate regulation involves day-to-day administrative issues, compliance tracking, project approvals and case disposal — domains that, in its view, sit naturally with senior bureaucrats who understand system complexities. The government believes that involving the Chief Secretary ensures speed, continuity and hands-on........

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