Section 72 of RERA 2016: Factors Considered by the Adjudicating Officer

Section 72 of the Real Estate (Regulation and Development) Act, 2016 (RERA) specifies the factors that an adjudicating officer must consider while determining the amount of compensation or interest, as applicable, in proceedings under Section 71.

Meaning and purpose of Section 72

Section 72 guides the assessment of monetary relief following a default covered by the adjudication mechanism. It requires the adjudicating officer to examine the financial consequences of the default, any unfair benefit obtained, whether the default was repeated, and other considerations necessary to achieve justice. The provision does not prescribe a fixed compensation amount or automatic formula.

Section 72: Statutory provisions

Explanation of the four factors

1. Disproportionate gain or unfair advantage - Section 72(a)

The adjudicating officer considers whether the defaulting party obtained an unfair financial or other quantifiable benefit through the default. Where evidence permits, the amount of that gain is relevant to determining appropriate relief.

2. Loss caused by the default - Section 72(b)

The actual loss resulting from the default is an important consideration. Relevant evidence may include payment records, agreements, correspondence and documents establishing the nature and amount of the loss and its connection with the default.

3. Repetitive nature of default - Section 72(c)

The officer considers whether the breach is isolated or repeated. A recurring failure to comply with relevant obligations may influence the assessment in the circumstances of the case.

4. Other factors in furtherance of justice - Section 72(d)

The officer may take account of other case-specific circumstances necessary for a just decision. This is a discretionary consideration, to be exercised consistently with the Act, applicable rules and the evidence.

Relationship between Sections 71 and 72 of RERA

Section 71 (Power to adjudicate) provides the mechanism for adjudging compensation relating to Sections 12, 14, 18 and 19. An adjudicating officer is a judicial officer who is or has been a District Judge, appointed under Section 71(1). Section 72 identifies the factors to be considered when fixing the quantum of compensation or interest in that adjudication.

Section 12 addresses obligations concerning the truthfulness of advertisements or prospectuses; Section 14 concerns compliance with sanctioned plans and project specifications; Section 18 concerns return of amounts and compensation in specified circumstances; and Section 19 sets out the rights and duties of allottees. The precise remedy and the appropriate forum depend on the relief sought and the applicable legal provisions.

Practical considerations in a compensation claim

A party seeking compensation should clearly identify the alleged default, the applicable statutory provision, the loss suffered and the documents supporting the claim. The opposing party should have a reasonable opportunity to be heard. Section 71 provides for expeditious disposal, ordinarily within sixty days of receipt of an application, with written reasons where disposal takes longer.

Section 72 should be read alongside the relevant State or Union Territory RERA rules and binding judicial decisions. It is not itself a separate penalty provision and does not mean that every claim automatically qualifies for compensation.

Official legal source

For the complete enactment, refer to the Real Estate (Regulation and Development) Act, 2016 on India Code, including Sections 12, 14, 18, 19, 71 and 72. The relevant RERA authority's notified rules should also be checked for procedural requirements.