Role of Adjudicating Officer in granting compensation under RERA (Real Estate Regulation and Development Act, 2016)

Introduction: This article discusses in details the role, appointment & powers of Adjudicating Officer in granting compensation under RERA (Real Estate Regulation and Development Act, 2016).

Adjudicating Officer under RERA

The State RERA Authority shall, in consultation with respective State Govt. appoint one or more Adjudicating officers.

Any aggrieved person may file a complaint with the Adjudicating officer for violation or contravention of the provisions of this Act, rules or regulations made there under.

The word “Person” as above shall include the association of allottees or any other voluntary consumer association registered under any law.

The Adjudicating officer shall decide the compensation or interest claims under the Act within 60 days from the date of receipt of the claim application.

For deciding any matter of enquiry, the Adjudicating officer shall have the power to summon and enforce the attendance of any person known to the facts and circumstances of the case to give evidence or to produce any document which may useful for or relevant to the subject matter of enquiry.

If the Adjudicating officer is satisfied that any person has failed to comply with the provisions of this Act, rules or regulations made there under, he may order to pay such compensation or interest as he think fit in accordance with this Act.

Under RERA, the Adjudicating Officer may grant compensation in following matters:

A. Against Builders / Promoters

1. Loss or damage incurred due to incorrect or false information contained in any notice or advertisement or prospectus or model pertaining to any real estate project or property on the basis of which buyer has made any advance or deposit to the Builder/ promoter (sec. 12).

2. Loss or damage incurred due to any structural defect or any other defect in workmanship, quality or provision of services or any other obligation of Builder / promoter as the agreement of sale.

3. Loss or damage incurred due to failure of builder / promoter to complete or give possession or delay in completion or delay in giving possession of the property as per the agreement of sale.

4. Loss or damage incurred due to defective title of land.

B. Against Buyer

1. Claim for interest for delayed payments.

Following factors to be considered by the Adjudicating Officer to decide compensation or interest claims

1. The amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;

2. The amount of loss caused as result of the default;

3. The repetitive nature of the default;

4. Any such other factor necessary to the case in furtherance of justice.

Main Points for consideration

1. The rate of interest payable by the allottee in case of default shall be equal to the rate of interest payable by the promoter in case of default.

2. The interest payable by the promoter to the allottee shall be from the date of receipt of amount by the promoter till the date the amount amd interest thereon is refunded to the allottee.

3. The interest payable by the allottee to the promoter shall be from the date the allottee defaults in making payment to the promoter as per agreement of sale till the date of actual payment by the allottee.

4. The rate of interest shall be SBI MCLR + 2%.

5. The amount of refund, compensation and interest shall be paid by the promoter with 45 days from the on which such amounts become due.

6. The application to the Adjudicating officer shall be made in triplicate in Form ‘N’ along with fees of Rs 1000/- through DD.

7. The pending claims for compensation or interest before Consumer forum/Commission may be withdrawn with the permission of such Consumer forum/Commission and be filed before the Adjudicating officer under this Act.

8. The applicant or appellant may either appear in person or authorise one or more practising CAs, CSs, CMAs or Advocates or any of its officers to present his case before the Adjudicating Officer.

9. No civil court shall have jurisdiction to entertain any suit or proceedings in respect of any matter over which the Adjudicating officer, RERA Authority or RERA Appellate tribunal is empowered by or under this Act to decide the matter.

10. No injunction or stay shall be granted by any court or any other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

The author is a practising CA and is registered Insolvency Professional. He can be reached at, Mob. +91 9953587496.


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November 2020