Section 72 RERA: Factors to be taken into account by the adjudicating officer

Section 72 of Real Estate (Regulation and Development) Act, 2016: Factors to be taken into account by the adjudicating officer

Official Bare Act Text

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

While adjudging the quantum of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due regard to the following factors, namely:--

(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;

(b) the amount of loss caused as a result of the default;

(d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice.

Legal Commentary & Landmark Judgments: Section 72

Section 72 establishes the statutory factors that the Adjudicating Officer must consider while quantifying compensation and interest under RERA.

Statutory Assessment Criteria: AO shall have due regard to: (a) amount of disproportionate gain or unfair advantage made by developer, (b) amount of actual financial loss caused to the allottee, and (c) repetitive nature of the default.
Totality of Circumstances: Power to evaluate inflation, escalating rental expenses, bank loan interest paid by buyer, and commercial opportunity loss.
Evidence-Based Quantification: Requires documentary proof of actual loss (e.g., rent agreements, bank loan interest statements, tax receipts) to sustain high compensation awards.

Key Landmark Precedents:

Wg. Cdr. Arifur Rahman Khan v. DLF Southern Homes Pvt. Ltd., (2020) 16 SCC 512: The Supreme Court held that home purchase is a lifelong dream; compensation must reflect financial hardship, rental outgoings, and psychological distress caused by multi-year developer delays.
DLF Homes Panchkula Pvt. Ltd. v. D.S. Dhanda, (2020) 16 SCC 318: The Supreme Court cautioned that compensation cannot be awarded under multiple overlapping heads (e.g., awarding both commercial interest and separate lump-sum mental agony damages without distinct proof).

Courtroom Practice & Strategic Litigation Guidance:

In compensation trials before the AO, submit an itemized Statement of Actual Loss supported by rental receipts, EMIs paid during construction delays, and CA loss computation certificates to satisfy Section 72 factors.

Section 72: Factors to be taken into account by the adjudicating officer

Section 72 of Real Estate (Regulation and Development) Act, 2016: Factors to be taken into account by the adjudicating officer

Legal Commentary & Landmark Judgments: Section 72