Section 38: Powers of Authority

Real Estate (Regulation and Development) Act, 2016 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2016

Legal Commentary & Landmark Judgments: Section 38

Section 38 vests the Regulatory Authority with powers to impose monetary penalties, levy statutory interest, and formulate its own internal procedural regulations guided by principles of natural justice.

  • Penalty Imposition: Authority has exclusive power to impose penalties and interest under Chapter VIII of the Act on defaulting promoters, agents, or allottees.
  • Natural Justice Guarantees: Guided by principles of natural justice and subject to statutory rules; not bound by the strict technicalities of the Code of Civil Procedure, 1908.
  • Procedural Autonomy: Authority has statutory power to regulate its own procedure, conduct virtual hearings, and establish streamlined digital filing mechanisms.
  • Execution of Orders: Orders imposing interest or penalty are directly executable as recovery of arrears of land revenue under Section 40.
Key Landmark Precedents:
  • Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., (2021) 19 SCC 347: The Supreme Court authoritatively settled that the Regulatory Authority possesses plenary jurisdiction under Section 38 read with Sections 31, 37, and 18 to direct refund of capital and statutory interest, while the Adjudicating Officer's jurisdiction under Section 71 is confined strictly to assessing compensation.
  • Imperia Structures Ltd. v. Anil Patni, (2020) 10 SCC 783: Affirmed that Section 38 equips RERA to award refund and interest speedily without requiring proof of actual tortious loss.
Courtroom Practice & Strategic Litigation Guidance:

Frame your prayer under Section 38/18 for refund plus interest before the Regulatory Authority Bench; never seek simple refund before the Adjudicating Officer (AO), who only assesses unliquidated damages under Section 71.