Section 76 of RERA 2016: Crediting Penalties to the Consolidated Fund of India or State Account
Section 76 of the Real Estate (Regulation and Development) Act, 2016 (RERA) specifies where money recovered as penalties imposed by a Real Estate Regulatory Authority or Real Estate Appellate Tribunal must be credited. The destination depends on whether the penalty is imposed in a Union territory or a State.
What does Section 76 provide?
Section 76(1): All sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in the Union territories, shall be credited to the Consolidated Fund of India.
Section 76(2): All sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in a State, shall be credited to such account as the State Government may specify.
Explanation of the legal provisions
1. Penalties imposed in Union territories
Under subsection (1), amounts actually realised as penalties imposed by the Authority or Appellate Tribunal in a Union territory are credited to the Consolidated Fund of India. This is the principal government fund referred to in Article 266(1) of the Constitution of India.
2. Penalties imposed in States
Under subsection (2), penalties realised in a State are credited to the account specified by the State Government. Section 76 does not itself name a single uniform account for all States. The applicable State Government specification must therefore be checked.
3. Meaning of important expressions
Authority: The Real Estate Regulatory Authority established under Section 20 of RERA to perform regulatory functions under the Act.
Appellate Tribunal: The Real Estate Appellate Tribunal established under Section 43 to hear appeals under the Act.
Penalties realised: Amounts recovered or received in satisfaction of penalties imposed, rather than merely proposed or assessed amounts. Section 76 governs their crediting to government accounts; it does not itself establish a new penalty or prescribe its quantum.
Practical effect of Section 76
Section 76 is an accounting and public-finance provision. It identifies the destination of penalty collections. The substantive grounds for penalties, persons liable and applicable amounts are governed by other RERA provisions, including Sections 59 to 68, as relevant. Penalties should not automatically be confused with compensation payable to an allottee or another aggrieved person.
Related provisions and official references
Section 75 deals with the constitution of the Authority's fund, while Section 77 deals with budgets, accounts and audit. For the statutory text and related notifications, consult the India Code official legislation portal and the Ministry of Housing and Urban Affairs. State-specific rules and government account directions should be verified with the concerned State Government or RERA Authority.
This article explains the central statutory provision. Its application to a particular collection may require examination of relevant rules, notifications and government directions.