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Understanding Section 71 of the RERA: Adjudicating Compensation

Section 71 of the Real Estate (Regulation and Development) Act, 2016 allows adjudicating officers to compensate aggrieved parties in real estate matters, ensuring a timely resolution. Keep reading to learn more!

Section 71 of RERA: An Overview 

Section 71 of RERA, titled “Power to adjudicate,” outlines the procedure for adjudging compensation in cases related to Sections 12, 14, 18, and 19 of the Act. These sections primarily deal with issues such as delays in project delivery, quality discrepancies, and violations by builders.

Appointment of Adjudicating Officers

Under this provision, the RERA Authority, in consultation with the appropriate government, appoints one or more judicial officers, typically retired or serving District Judges, as adjudicating officers. These officers are responsible for conducting inquiries into real estate matters. Importantly, they are required to provide any person concerned with a reasonable opportunity to be heard.

Transfer from Consumer Disputes Redressal Forums

One significant aspect of Section 71 is the provision that allows individuals with complaints covered under Sections 12, 14, 18, and 19 of RERA, which were previously pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission, to withdraw their complaints from these forums and file applications before the adjudicating officer under RERA. This streamlines the process and ensures that cases are resolved efficiently.

Timely Resolution

The Act emphasizes expeditious resolution of compensation applications. Adjudicating officers are mandated to dispose of these cases within sixty days from the date of receiving the application. In cases where this timeframe cannot be met, officers must provide written reasons for the delay.

Powers of Adjudicating Officers

While conducting inquiries, adjudicating officers possess the authority to summon individuals with knowledge of the case to provide evidence or produce relevant documents. This power ensures a thorough investigation and a fair decision. If, during the inquiry, it is established that a party has failed to comply with the provisions of the relevant sections, the adjudicating officer can direct them to pay compensation or interest, as deemed appropriate.

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Conclusion

Section 71 of the RERA is a critical provision that streamlines the process of adjudicating compensation in real estate disputes. It empowers adjudicating officers to efficiently resolve cases, ensuring that justice is served. This provision exemplifies the commitment of RERA to create a transparent and accountable real estate sector in India.

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FAQs

What remedies are available to homebuyers if the promoter fails to fulfil their contract?

If the promoter fails to complete or provide possession of an apartment, plot, or building, and if the allottee wishes to withdraw from the project, they can receive a refund of their investment along with interest and compensation as prescribed in the Act. If the allottee chooses not to withdraw, the promoter is liable to pay interest for every month of delay until possession is provided.

Can the Authority issue interim orders against the promoter?

As stated in Section 36, if the Authority finds that any action is in contravention of the Act, it can issue restraining orders against the promoter, allottee, or real estate agent until the inquiry is concluded.

Can an appeal be filed against the orders of the Authority or adjudicating officer?

Yes, as per Section 44(1) & (2) of the Act, the appropriate Government, competent authority, or any aggrieved person can file an appeal with the Appellate Tribunal within 60 days from the date of the Authority's or adjudicating officer's order.

What is the time limit for the Appellate Tribunal to dispose of appeals?

Section 44 requires the Appellate Tribunal to aim for prompt disposal of appeals, preferably within 60 days of filing. If the case cannot be resolved in this time, the Appellate Tribunal must provide reasons for the delay.

Are civil courts allowed to entertain disputes under the Act?

No, as per Section 79 of the Act, civil courts are prohibited from handling disputes (suits or proceedings) related to matters that the Authority, adjudicating officer, or Appellate Tribunal is empowered to determine under the Act.

Are consumer forums allowed to handle disputes under the RERA Act?

Consumer forums (National, State, or District) have not been excluded from the purview of the Act. Section 71 allows the complainant to withdraw complaints related to matters under Sections 12, 14, 18, and 19 from the consumer forum and file them with the adjudicating officer appointed under the Act.

Can a complainant approach both the Regulatory Authority/adjudicating officer and consumer forums for the same disputes?

The laws do not permit forum shopping, so an aggrieved party can only approach one of the two for disputes over the same matter.

Can the orders of the Appellate Tribunal be executed and treated as decrees?

Yes, as per Section 57 of the Act, the orders of the Appellate Tribunal can be executed by the Appellate Tribunal itself or by a civil court (if the Appellate Tribunal transfers the order for execution). Such orders are treated as decrees of a civil court, and the Appellate Tribunal has the powers of a civil court for this purpose.

Is there a provision for appealing the orders of the Appellate Tribunal?

According to Section 58 of the Act, any person aggrieved by the decision or order of the Appellate Tribunal can file an appeal with the High Court within 60 days from the date of communication of the order.

What are the methods for recovering outstanding interest amounts?

Under Section 40 of the Act, if a promoter, real estate agent, or allottee fails to pay interest, penalty, or compensation as imposed by the adjudicating officer, Regulatory Authority, or appellate Authority, it can be recovered as arrears of land revenue in the prescribed manner.

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About the Author

Yuktha, Legal Compliance Manager, specialises in corporate law and regulatory alignment. With extensive experience in compliance frameworks, risk assessments, and audits, she has developed policies ensuring adherence to legal standards. Known for actionable insights and attention to detail, Yuktha helps businesses with complex regulations while maintaining operational efficiency.

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