Section 71: Power to Adjudicate under RERA, 2016
Section 71 of the Real Estate (Regulation and Development) Act, 2016 (RERA) provides for adjudication of compensation claims arising under sections 12, 14, 18 and 19. It specifies the appointment and qualifications of the adjudicating officer, the inquiry procedure, the expected time for disposal and the power to require evidence.
Text and meaning of Section 71
Section 71(1): Appointment and hearing
For adjudging compensation under sections 12, 14, 18 and 19, the Real Estate Regulatory Authority appoints, in consultation with the appropriate Government, one or more judicial officers who are or have been District Judges. The adjudicating officer conducts the prescribed inquiry and must provide a reasonable opportunity of being heard to the persons concerned.
Proviso: A person whose complaint relating to those provisions was pending before a consumer forum or commission on or before commencement of the Act may, with that forum's or commission's permission, withdraw the complaint and apply to the adjudicating officer. The statutory proviso refers to forums constituted under section 9 of the Consumer Protection Act, 1986 and is a transitional provision; it does not generally require withdrawal of all consumer complaints.
Section 71(2): Time for disposal
An application for compensation should be handled expeditiously and disposed of within 60 days from receipt. If the officer cannot dispose of it within that period, the reasons for delay must be recorded in writing.
Section 71(3): Inquiry and orders
The officer may summon persons acquainted with the facts, enforce their attendance and require documents relevant to the inquiry. If a failure to comply with the specified statutory provisions is established, the officer may direct payment of compensation or interest, as applicable, in accordance with those provisions.
Which provisions can lead to compensation?
- Section 12: Liability for loss or damage caused by incorrect or false statements in advertisements or prospectuses, subject to the statutory conditions.
- Section 14: Compliance with sanctioned plans, layout plans, specifications and obligations concerning alterations and structural defects.
- Section 18: Remedies for failure to complete or give possession and certain other promoter defaults, including applicable compensation.
- Section 19: Rights and duties of allottees, including specified entitlements to refund, interest and compensation.
Adjudicating officer and Regulatory Authority: Distinction
The adjudicating officer deals with adjudging compensation within the statutory scope of Section 71. Other RERA relief, such as directions for refund or statutory interest, may fall within the Regulatory Authority's jurisdiction depending on the nature of the claim. The Supreme Court clarified the distinction in Newtech Promoters and Developers Pvt. Ltd. v. State of Uttar Pradesh (2021). Claims should therefore be framed according to the relief sought rather than assuming every dispute must be filed before the adjudicating officer.
How compensation is assessed
Section 72 directs consideration of disproportionate gain or unfair advantage, loss caused by the default, repetition of the default and other factors necessary to secure justice. Documentary evidence supporting loss, the relevant agreement and the alleged statutory breach will ordinarily be important.
Procedure for an application
- Identify the statutory breach under section 12, 14, 18 or 19 and the compensation sought.
- Check the applicable State or Union Territory RERA Rules, prescribed form, fees and filing portal.
- Attach the agreement for sale, payment records, correspondence, relevant project documents and evidence of loss.
- Participate in the inquiry and respond to notices and requests for documents.
- Review the order and the applicable statutory remedy for appeal, where required.
Official legal resources
Read the Real Estate (Regulation and Development) Act, 2016 on India Code and the official Act PDF. State-specific procedures, forms and fees should be checked against the applicable RERA Authority's official rules and notifications.
Frequently asked questions
Is the 60-day period an automatic deadline for allowing a claim?
No. Section 71(2) directs expeditious disposal within 60 days and requires written reasons if disposal is delayed; it does not say that a pending claim is automatically allowed.
Can the adjudicating officer summon documents?
Yes. Section 71(3) permits summons, enforcement of attendance and production of documents useful or relevant to the inquiry.
Does Section 71 cover every RERA complaint?
No. Its adjudication provision concerns compensation under sections 12, 14, 18 and 19. Jurisdiction for other relief must be determined separately.