Section 70 RERA: Compounding of offences

Section 70 of Real Estate (Regulation and Development) Act, 2016: Compounding of offences

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), if any person is punished with imprisonment under this Act, the punishment may, either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed:

Provided that the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded.

Legal Commentary & Landmark Judgments: Section 70

Section 70 empowers the competent court or Regulatory Authority to compound offences punishable with imprisonment under RERA, either before or after the institution of prosecution proceedings.

Compounding Jurisdiction: Any offence punishable with imprisonment under the Act may, either before or after the institution of proceedings, be compounded by the court or Authority.
Compounding Terms: Compounding is subject to such terms, conditions, and payment of compounding fees as may be prescribed by State Rules.
Limit on Compounding Fee: Compounding fee cannot exceed the maximum fine prescribed for that specific statutory offence.
Effect of Compounding: Operates as an absolute statutory acquittal of the accused; no further criminal proceedings can be initiated or continued for the compounded offence.

Key Landmark Precedents:

JIK Industries Ltd. v. Amarlal V. Jumani, (2012) 3 SCC 255: The Supreme Court explained that statutory compounding provisions are designed to facilitate commercial settlement, de-clog criminal courts, and secure financial restitution for victims.
Meters and Instruments Pvt. Ltd. v. Kanchan Mehta, (2018) 1 SCC 560: Affirmed that in economic and regulatory offences, civil restitution through compounding should be prioritized over custodial incarceration.

Courtroom Practice & Strategic Litigation Guidance:

Promoters facing Section 59(2) or Section 64 arrest warrants should file an urgent Compounding Application under Section 70, tendering full refund of allottee dues along with compounding fees to secure immediate criminal discharge.

Section 70: Compounding of offences

Section 70 of Real Estate (Regulation and Development) Act, 2016: Compounding of offences

Legal Commentary & Landmark Judgments: Section 70