Section 69 of RERA 2016: Offences by Companies
Section 69 of the Real Estate (Regulation and Development) Act, 2016 (RERA) specifies when a company and the persons managing its business can be held responsible for an offence under the Act. It covers persons in charge of and responsible for the conduct of the company's business, as well as directors, managers, secretaries and other officers whose consent, connivance or neglect is proved.
What does Section 69 provide?
The provision addresses responsibility for offences committed by a company, rather than creating a separate penalty amount for every corporate breach. Liability and punishment depend on the underlying offence and the statutory requirements being established.
Section 69(1): Liability of the company and persons in charge
Statutory provision: Where an offence under RERA has been committed by a company, the company and every person who, at the time of the offence, was in charge of, or responsible to the company for conducting its business, are deemed guilty and liable to proceedings and punishment accordingly.
Proviso: Such a person is not liable to punishment under the Act if that person proves that the offence occurred without their knowledge or that they exercised all due diligence to prevent it.
The relevant question is the person's actual responsibility at the time of the alleged offence. A person's designation alone should not be confused with the specific conditions stated in Section 69(1).
Section 69(2): Consent, connivance or neglect
Notwithstanding subsection (1), where a company commits an offence and it is proved that the offence was committed with the consent or connivance of, or was attributable to neglect by, a director, manager, secretary or other officer, that person is also deemed guilty and liable to proceedings and punishment accordingly.
This subsection specifically addresses officers whose involvement or neglect is proved. It operates in addition to the responsibility described in subsection (1).
Definitions under the Explanation to Section 69
- Company: Any body corporate, including a firm or another association of individuals.
- Director in relation to a firm: A partner of that firm.
How the provision operates in practice
- Identify the underlying offence: Determine which obligation or punishable provision of RERA is alleged to have been breached.
- Establish corporate responsibility: Identify the company and the persons who were in charge of or responsible for conducting its business when the offence occurred.
- Consider the statutory defence: Under Section 69(1), an individual may prove lack of knowledge or the exercise of all due diligence to prevent the offence.
- Examine officers' conduct: Under Section 69(2), consent, connivance or neglect attributable to a specified officer must be proved.
Related provisions: Sections 70 and 80
Section 70 - Compounding of offences: Provides for court compounding of offences involving imprisonment under the Act, subject to prescribed terms, conditions and amounts. Whether compounding is available and its terms must be assessed under the applicable law and rules.
Section 80 - Cognizance of offences: A court may take cognizance of a punishable RERA offence only upon a written complaint by the Regulatory Authority or its duly authorised officer. Trial must be before a Metropolitan Magistrate or Judicial Magistrate of the first class or a higher competent court.
Official statutory text and resources
For the complete Act, amendments and operative text, refer to the Real Estate (Regulation and Development) Act, 2016 on India Code (official PDF) and the Ministry of Housing and Urban Affairs. State-specific rules and applicable regulatory orders should also be checked when dealing with a particular matter.