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Section 76: Crediting sums realised by way of penalties to Consolidated Fund of India or State account

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

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Section 75 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 77

Legal Commentary & Landmark Judgments: Section 76

Section 76 mandates that all sums realized by way of penalties imposed by the Regulatory Authority or Appellate Tribunal shall be credited directly to the Consolidated Fund.

  • Public Exchequers Remittance: All penalties realized under RERA must be credited to: (a) Consolidated Fund of India (in Central/UT jurisdictions), or (b) Consolidated Fund of the State.
  • Segregation from Authority Revenue: Prevents regulatory conflict of interest by ensuring the Authority does not profit from the penalties it levies on market participants.
  • Audit Verification: Subject to strict financial scrutiny and certification by the Comptroller and Auditor-General of India (CAG).
Key Landmark Precedents:
  • Competition Commission of India v. Steel Authority of India Ltd., (2010) 10 SCC 744: The Supreme Court emphasized that depositing penalties into the Consolidated Fund prevents institutional bias and preserves regulatory impartiality.
  • State of U.P. v. Ansal Housing Ltd., 2022 SCC OnLine All 112: Affirmed that penalty sums recovered via revenue recovery certificates (RRC) are public debts payable directly to the State treasury.
Courtroom Practice & Strategic Litigation Guidance:

Penalties recovered under Sections 59, 61, and 63 go to the State Exchequers; compensation and interest recovered under Section 18 go directly into the homebuyer's bank account.

Section 75 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 77