Section 70 of RERA, 2016: Compounding of Offences

Section 70 of the Real Estate (Regulation and Development) Act, 2016 (RERA) provides a mechanism for a court to compound offences involving imprisonment under the Act, subject to prescribed conditions and monetary limits.

Meaning of compounding of offences under RERA

Compounding is a statutory procedure through which an offence may be settled in the manner authorised by law, rather than proceeding solely through the ordinary criminal punishment process. Under Section 70, compounding is a matter for the court, on prescribed terms and conditions and payment of the applicable amount. It is not an automatic entitlement merely because a party offers payment.

Section 70: Statutory provision

Statutory source: Real Estate (Regulation and Development) Act, 2016, India Code (official text).

Conditions and scope of Section 70

1. Offence punishable with imprisonment: The provision addresses offences under RERA that carry imprisonment as a punishment.
2. Before or after prosecution: The court may permit compounding either before or after the institution of prosecution, in accordance with the Act and applicable rules.
3. Court-supervised process: The court determines the compounding in accordance with the prescribed conditions.
4. Prescribed payment: The amount and conditions depend on the applicable rules made under RERA.
5. Maximum statutory limit: The prescribed compounding sum cannot exceed the maximum fine that may be imposed for the relevant offence.

Meaning of the non-obstante clause

The opening words, "Notwithstanding anything contained in the Code of Criminal Procedure, 1973", give the specific compounding mechanism in Section 70 overriding effect where inconsistent with the general provisions of that Code. The express statutory reference remains to the Code of Criminal Procedure, 1973; the subsequent commencement of the Bharatiya Nagarik Suraksha Sanhita, 2023 does not itself alter the quoted text of Section 70.

Which RERA offences are relevant?

The Act includes imprisonment-related provisions concerning specified defaults by promoters and real estate agents, including Section 64 and Section 66, as well as Section 59(2). The applicability of compounding must be checked against the currently amended offence provision and the rules governing the particular State or Union Territory. For example, Section 68 concerning allottees was amended with effect from 7 May 2026 to provide for a penalty rather than the earlier imprisonment-based formulation.

Prescribed rules and payment

Section 84 of RERA authorises the appropriate Government to prescribe rules, including terms, conditions and the payment for compounding under Section 70. Accordingly, the applicable State or Union Territory rules should be examined before calculating an amount or preparing an application. An amount specified in one jurisdiction's rules should not automatically be applied in another jurisdiction.

Practical procedure

1. Identify the precise alleged offence and confirm whether its current provision carries imprisonment.
2. Obtain the applicable State or Union Territory RERA rules and identify the prescribed compounding amount and conditions.
3. Place the relevant facts, case particulars and request for compounding before the competent court.
4. Comply with the court's directions and any payment or other prescribed conditions.
5. Retain the court's compounding order and proof of compliance.

Difference between penalty and compounding

A regulatory penalty may be imposed under the relevant RERA provision by the competent authority for a specified contravention. Compounding under Section 70, by contrast, concerns the court-supervised settlement of an offence carrying imprisonment, subject to statutory and prescribed conditions. These are distinct procedures and should not be treated as interchangeable.

Frequently asked questions

Can an offence be compounded before a criminal case is filed?

Yes. Section 70 expressly permits compounding before or after the institution of prosecution, subject to the statutory requirements and the court's decision.

Can the compounding amount exceed the maximum fine?

No. The proviso to Section 70 prohibits a prescribed compounding sum exceeding the maximum fine for the offence concerned.

Does Section 70 apply to every RERA penalty?

No. Its express scope concerns offences involving imprisonment under the Act, not every civil or regulatory penalty.

Official legal resources

For the authoritative text, amendments and subordinate legislation, consult India Code - RERA, 2016 and the relevant State or Union Territory RERA portal and notified rules.

This article explains the statutory framework generally. The current offence provisions, notifications and local rules govern individual cases.