RERA, 2016: the Real Estate Regulatory Authority, the Appellate Tribunal, adjudication, offences and penalties - Land Law

On this page

1. The Real Estate Regulatory Authority: sections 20 to 30
2. Functions and powers of the Authority: sections 31 to 40
3. Central Advisory Council: sections 41 and 42
4. The Real Estate Appellate Tribunal: sections 43 to 58
5. Offences and penalties: sections 59 to 70
6. Adjudication of compensation: sections 71 and 72
How this is examined

Cases checked to exist. Read the judgment before quoting a holding.

Every case cited here has been checked to exist — the citation resolves and names the right parties. The propositions attributed to each case have not been verified line by line against the judgment. Case names link through to the full judgment: read it before quoting a holding in an examination answer, and never carry a proposition from notes into court on trust.

The examinable core. RERA sets up a three-tier forum: the Authority (and its adjudicating officer for compensation), the Appellate Tribunal, and a second appeal to the High Court on substantial questions of law. Civil courts are barred (section 79). The penalty chapter (sections 59 to 70) is mostly percentages of the project cost; the numbers to learn are 10 per cent (non-registration), 5 per cent (false information or other breaches), and imprisonment of up to three years for a promoter and one year for an agent or allottee who defies the Tribunal.

1. The Real Estate Regulatory Authority: sections 20 to 30

Establishment (section 20). The appropriate Government establishes the Authority by notification within one year of commencement; two or more States may share one, and a State may have more than one. Until then an interim Authority could be designated. It is a body corporate. In Karnataka it is the Karnataka Real Estate Regulatory Authority, Bengaluru.
Composition (section 21). A Chairperson and not less than two whole-time Members.
Selection (section 22). On the recommendation of a Selection Committee of the Chief Justice of the High Court or his nominee, the Housing Secretary and the Law Secretary, from persons with at least twenty years (Chairperson) or fifteen years (Members) of experience in urban development, housing, real estate, infrastructure, economics, law, commerce, accountancy, management, public affairs or administration. A State Government servant must have held the rank of Additional Secretary to the Central Government (for Chairperson) or Secretary to the State Government (for Member).
Term (section 23). Not more than five years, or until sixty-five, whichever is earlier; no re-appointment.
Removal (section 26) for insolvency, conviction involving moral turpitude, incapacity, a prejudicial interest, or abuse of position; on the last two grounds only after an inquiry by a High Court Judge. Section 27 restricts their employment with persons associated with work under the Act after they leave office.

2. Functions and powers of the Authority: sections 31 to 40

Complaints (section 31). Any aggrieved person, including an association of allottees or a registered consumer association, may complain to the Authority or the adjudicating officer of any violation by a promoter, allottee or agent. Under the Karnataka Rules a complaint to the Authority is in Form N with a fee of one thousand rupees, and the Authority is to dispose of it within sixty days or record reasons.
Promotion of the sector (section 32) by recommendations to Government on protection of allottees, promoters and agents, a single-window system for approvals, grievance redress against competent authorities, investment and affordable housing, and environmentally sustainable construction; and advocacy and awareness (section 33).
Functions (section 34): register and regulate projects and agents; maintain a public website of registered projects; maintain a public list of defaulting promoters with photographs, and of agents; fix standard fees; and ensure compliance with obligations and with its own orders.
Investigation (section 35) on complaint or suo motu, with civil-court powers of discovery, summoning and commissions.
Interim orders (section 36) restraining a promoter, allottee or agent, even without notice where necessary; directions (section 37) binding on all concerned.
Penalty and interest (section 38) for contravention; guided by natural justice; and a suo motu reference to the Competition Commission of India on anti-competitive practices.
Rectification (section 39) of mistakes apparent on the record within two years, but not of the substantive part of an order or of an order under appeal.
Recovery (section 40) of interest, penalty or compensation as arrears of land revenue, and enforcement of other orders as prescribed.

3. Central Advisory Council: sections 41 and 42

Established by the Central Government, with the Union Minister in charge of Housing as ex officio Chairperson, and representatives of the Ministries of Finance, Commerce and Industry, Urban Development, Consumer Affairs, Corporate Affairs and Law, NITI Aayog, the National Housing Bank, HUDCO, five State Governments and five Authorities by rotation, and others. It advises the Centre on implementation, major policy, consumer protection and growth of the sector.

4. The Real Estate Appellate Tribunal: sections 43 to 58

Establishment (section 43). Within one year, by notification; benches may be set up; every bench has at least one Judicial Member and one Administrative or Technical Member. In Karnataka it is the Karnataka Real Estate Appellate Tribunal, Bengaluru.
Who may appeal (sections 43(5) and 44(1)). Any person aggrieved by a direction, decision or order of the Authority or adjudicating officer, the appropriate Government or the competent authority.
Pre-deposit (proviso to section 43(5)). A promoter’s appeal is not entertained unless he first deposits at least thirty per cent of the penalty (or a higher percentage fixed by the Tribunal), or the total amount payable to the allottee with interest and compensation, or both. Newtech Promoters, 2021 INSC 716, upheld this condition.
Limitation and disposal (section 44). Appeal within sixty days of receipt of the order, extendable for sufficient cause; disposal endeavoured within sixty days, with reasons recorded for delay. Under the Karnataka Rules the appeal fee is five thousand rupees.
Composition (section 45). A Chairperson and not less than two whole-time Members, one Judicial and one Technical or Administrative.
Qualifications (section 46). Chairperson: a sitting or former High Court Judge, appointed in consultation with the Chief Justice. Judicial Member: fifteen years in judicial office, or Additional Secretary-level in the Indian Legal Service, or an advocate of twenty years with real estate experience. Technical or Administrative Member: twenty years in the relevant fields or Additional Secretary-level service. Members are chosen by a Selection Committee of the Chief Justice or his nominee, the Housing Secretary and the Law Secretary.
Term (section 47). Up to five years, no re-appointment; the Chairperson until sixty-seven, Members until sixty-five. Removal on the grounds in section 49, after an inquiry by a High Court Judge.
Powers (section 53). Not bound by the CPC or the Evidence Act; guided by natural justice and regulates its own procedure; civil-court powers to summon, require discovery, receive affidavits, issue commissions, review its decisions, and dismiss for default or proceed ex parte. Its proceedings are judicial proceedings.
Representation (section 56) in person or through chartered accountants, company secretaries, cost accountants, legal practitioners or officers.
Execution (section 57). Its orders are executable as a decree, by itself or by transmission to a civil court.
Appeal to the High Court (section 58) within sixty days, on the grounds in section 100 of the CPC (a substantial question of law); none lies from a consent order.

5. Offences and penalties: sections 59 to 70

Non-registration (section 59): penalty up to ten per cent of the estimated project cost; on continued violation or non-compliance, imprisonment up to three years or a further fine up to ten per cent, or both.
False information or breach of section 4 (section 60): up to five per cent.
Any other contravention by a promoter (section 61): up to five per cent.
Agent in breach of sections 9 or 10 (section 62): ten thousand rupees a day, up to five per cent of the cost of the unit sold.
Defying the Authority: promoter, daily penalty up to five per cent of project cost (section 63); agent, up to five per cent of unit cost (section 65); allottee, up to five per cent of unit cost (section 67).
Defying the Appellate Tribunal: promoter, imprisonment up to three years or daily fine up to ten per cent of project cost, or both (section 64); agent and allottee, imprisonment up to one year or daily fine up to ten per cent of unit cost, or both (sections 66 and 68).
Companies (section 69): every person in charge is liable unless he proves lack of knowledge or due diligence; directors and officers whose consent, connivance or neglect is proved are also liable.
Compounding (section 70) of imprisonment by the court on prescribed terms, the sum not exceeding the maximum fine.
Cognizance (section 80) only on a written complaint by the Authority or its authorised officer, and trial by a court not below a Metropolitan Magistrate or Judicial Magistrate of the first class.

6. Adjudication of compensation: sections 71 and 72

For adjudging compensation under sections 12, 14, 18 and 19, the Authority appoints, in consultation with the Government, one or more adjudicating officers who are or have been District Judges. Complaints pending before consumer fora on commencement could be withdrawn and filed before him. He disposes of applications within sixty days or records reasons. In fixing compensation or interest he considers the disproportionate gain or unfair advantage made by the default, the loss caused, the repetitive nature of the default, and other factors in the interest of justice (section 72).

Other provisions: bar of civil courts and of injunctions in matters the Authority, adjudicating officer or Tribunal may decide (section 79); the Act is in addition to other laws (section 88), so a consumer complaint remains an option; and it has overriding effect over inconsistent laws (section 89). The Authority may delegate its powers to a member or officer (section 81), which Newtech held permits a single member to decide refund complaints.

Trap. The Tribunal is not the first forum. An allottee starts before the Authority (refund, interest, directions) or the adjudicating officer (compensation). Only an order of either goes to the Tribunal, and only the Tribunal’s order goes to the High Court.

How this is examined

“Discuss the composition and powers of the Real Estate Regulatory Authority” (August 2024, and the 100-mark papers of August 2024 and November 2021) uses sections 1 and 2. “Discuss the provisions relating to composition and powers of the Real Estate Appellate Tribunal” (January 2026, June 2025) and the short note “Real Estate Appellate Tribunal” (August 2024, November 2021) use section 4. “Offences and penalties under RERA” was a short note in January 2026; “Central Advisory Council” (November 2021) and “Karnataka RERA Rules, 2017” (November 2022) also appear.