Section 71 RERA: Power to adjudicate

Section 71 of Real Estate (Regulation and Development) Act, 2016: Power to adjudicate

Official Bare Act Text

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

(1) For the purpose of adjudging compensation under sections 12, 14, 18 and section 19, the Authority shall appoint in consultation with the appropriate Government one or more judicial officer as deemed necessary, who is or has been a District Judge to be an adjudicating officer for holding an inquiry in the prescribed manner, after giving any person concerned a reasonable opportunity of being heard:

Provided that any person whose complaint in respect of matters covered under sections 12, 14, 18 and section 19 is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, 1986 (68 of 1986), on or before the commencement of this Act, he may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending before it and file an application before the adjudicating officer under this Act.

(2) The application for adjudging compensation under sub-section (1), shall be dealt with by the adjudicating officer as expeditiously as possible and dispose of the same within a period of sixty days from the date of receipt of the application:

Provided that where any such application could not be disposed of within the said period of sixty days, the adjudicating officer shall record his reasons in writing for not disposing of the application within that period.

(3) While holding an inquiry the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), he may direct to pay such compensation or interest, as the case any be, as he thinks fit in accordance with the provisions of any of those sections.

Legal Commentary & Landmark Judgments: Section 71

Section 71 prescribes the appointment and specialized jurisdiction of the Adjudicating Officer (AO) to adjudicate unliquidated compensation claims under Sections 12, 14, 18, and 19.

Appointment of Adjudicating Officer: Authority appoints one or more Adjudicating Officers who are, or have been, District Judges, in consultation with the Appropriate Government.
Exclusive Compensation Domain: AO has exclusive jurisdiction to assess and award unliquidated tortious damages and compensation under Sections 12 (misrepresentation), 14 (structural defects), 18 (default/loss), and 19 (allottee loss).
Sixty-Day Adjudication Window: AO shall hold an inquiry in prescribed manner and endeavor to dispose of the compensation petition within 60 days.
Bifurcation from Refund Claims: Refund of principal capital and statutory interest falls strictly within the Authority's jurisdiction under Section 31/38; only general or special unliquidated compensation lies before the AO.

Key Landmark Precedents:

Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., (2021) 19 SCC 347: The Supreme Court authoritatively resolved the jurisdictional division under RERA, holding that claims for return of investment and statutory interest under Section 18 lie exclusively before the Regulatory Authority, whereas claims for compensation and general damages under Sections 12, 14, 18, and 19 lie exclusively before the Adjudicating Officer under Section 71.
Imperia Structures Ltd. v. Anil Patni, (2020) 10 SCC 783: Confirmed that an allottee can file a single composite complaint seeking refund and interest before RERA, and separate compensation before the AO.

Courtroom Practice & Strategic Litigation Guidance:

Do not file a claim for simple refund and interest in Form N before the Adjudicating Officer; file Form M before the Regulatory Authority Bench. Use Form N before the AO only when seeking damages for mental agony, loss of rent, or business disruption.

Section 71: Power to adjudicate

Section 71 of Real Estate (Regulation and Development) Act, 2016: Power to adjudicate

Legal Commentary & Landmark Judgments: Section 71