04. PENALTIES



OFFENCES AND PENALTIES  

37. Terms and conditions and the fine payable for compounding of offence.—

(1) The court shall, for the purposes of compounding any offence specified under section 70 of the Act, accept an amount as specified in the Table below: 

Offence Amount to be paid for compounding the offence 
Punishable with imprisonment under sub-section (2) of Section 59  ten per cent of the estimated cost of the real estate project 
Punishable with imprisonment under section 64  ten per cent of the estimated cost of the real estate project
Punishable with imprisonment under section 66  ten per cent of the estimated cost of the plot, apartment or building as the case may be, of the real estate project, for which the sale or purchase has been facilitated
Punishable with imprisonment under section 68 ten per cent of the estimated cost of the plot, apartment or building as the case may be 

(2) The promoter, allottee or real estate agent, as the case may be, shall comply with the orders of the Authority or the Appellate Tribunal, within the period specified by the court, which shall not be more than thirty days from the date of compounding of the offence. 

(3) On payment of the sum of money in accordance with sub-rule (1) and subsequent to compliance of the orders of the Authority or the Appellate Tribunal as provided in sub-rule (2), any person in custody in connection with that offence shall be set at liberty and no proceedings shall be instituted or continued against such person in any court for that offence. 

(4) The acceptance of the sum of money for compounding an offence under sub-rule (1), by the Court shall be deemed to be an acquittal within the meaning of Section 300 of the Code of Criminal Procedure, 1973 (2 of 1974). 

FILING OF COMPLAINT WITH THE AUTHORITY AND THE ADJUDICATING OFFICER  

38. The manner of holding an inquiry by the Authority.—

(1) Any aggrieved person may file a complaint with the Authority for any violation under the Act or the rules and regulations made there under, save as those provided to be adjudicated by the adjudicating officer in such Form, manner and fees as specified by regulations. 

(2) The Authority shall for the purposes of deciding any complaint as specified under subrule (1), follow summary procedure for inquiry in the following manner, namely:— 

(a) Upon receipt of the complaint, the Authority shall issue a notice along with particulars of the alleged contravention and the relevant documents to the respondent.

(b) The respondent against whom such notice is issued under clause (a), may file his reply in respect of the complaint within the period as specified in the notice.

(c) The notice may specify a date and time for further hearing and the date and time for the hearing shall also be communicated to the complainant.

(d) On the date so fixed, the Authority shall explain to the respondent about the contravention alleged to have been committed in relation to any of the provisions of the Act or the rules and regulations made thereunder and if the respondent,— 

(i) pleads guilty, the Authority shall record the plea, and pass such orders including imposition of penalty as it thinks fit in accordance with the provisions of the Act or the rules and regulations, made hereunder; (ii) does not plead guilty and contests the complaint, the Authority shall demand an explanation from the respondent.

(e) In case the Authority is satisfied on the basis of the submissions made that the complaint does not require any further inquiry it may dismiss the complaint. (f) In case the Authority is satisfied on the basis of the submissions made that there is need for further hearing into the complaint it may order production of documents or other evidence on a date and time fixed by it. (g) The Authority shall have the power to carry out an inquiry into the complaint on the basis of documents and submissions.

(h) The Authority shall have the 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 documents which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry, and in taking such evidence, the Authority shall not be bound to observe the provisions of the Indian Evidence Act, 1872 (11of 1872). (i) On the date so fixed, the Authority upon consideration of the evidence produced before it and other records and submissions is satisfied that,

(i) the respondent is in contravention of the provisions of the Act or the rules and regulations made thereunder, it shall pass such orders including imposition of penalty as it thinks fit in accordance with the provisions of the Act or the rules and regulations made there under; (ii) the respondent is not in contravention of the provisions of the Act or the rules and regulations made hereunder, the Authority may, by order in writing, dismiss the complaint, with reasons to be recorded in writing. (j) If any person fails, neglects or refuses to appear, or present himself as required before the Authority, the Authority shall have the power to proceed with the inquiry in the absence of such person or persons after recording the reasons for doing so. 

(3) The procedure for day to day functioning of the Authority, which have not been provided by the Act or the rules made thereunder, shall be as specified by regulations made by the Authority. 

(4) Where a party to the complaint is represented by an authorised person, as provided under section 56, a copy of the authorisation to act as such and the written consent thereto by such authorised person, both in original, shall be appended to the complaint or the reply to the notice of the complaint, as the case may be.  

39. The manner of holding an inquiry by the adjudicating officer.—

(1) Any aggrieved person may file a complaint with the adjudicating officer for interest and compensation as provided under sections12, 14, 18 and 19 in such Form, manner and fees as specified by regulations. 

(2) The adjudicating officer shall for the purposes of adjudging interest and compensation follow summary procedure for inquiry in the following manner, namely:— 
(a) Upon receipt of the complaint, the adjudicating officer shall issue a notice along with particulars of the alleged contravention and the relevant documents to the respondent.

(b) The respondent against whom such notice is issued under clause (a) of sub-rule (2) may file his reply in respect of the complaint within the period as specified in the notice.

(c) The notice may specify a date and time for further hearing and the date and time for the hearing shall also be communicated to the complainant.

(d) On the date so fixed, the adjudicating officer shall explain to the respondent about the contravention alleged to have been committed in relation to any of the provisions of the Act or the rules and regulations made thereunder and if the respondent,- 

(i) pleads guilty, the adjudicating officer shall record the plea, and by order in writing for payment of interest as specified in rule 15 and such compensation as he thinks fit, as the case may be, in accordance with the provisions of the Act or the rules and regulations, made thereunder

(ii) does not plead guilty and contests the complaint, the adjudicating officer shall demand and explanation from the respondent.

(e) Incase the adjudicating officer is satisfied on the basis of the submissions made that the complaint does not require any further inquiry it may dismiss the complaint.

(f) In case the adjudicating officer is satisfied on the basis of the submissions made that there is need for further hearing into the complaint it may order production of documents or other evidence on a date and time fixed by him.

(g) The adjudicating officer shall have the power to carry out an inquiry into the complaint on the basis of documents and submissions.

(h) The adjudicating officer shall have the 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 documents which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry, and in taking such evidence, the adjudicating officer shall not be bound to observe the provisions of the Indian Evidence Act, 1872 (11 of 1872)

(i) On the date so fixed, the adjudicating officer upon consideration of the evidence produced before him and other records and submissions is satisfied that the respondent is,— 

(i) liable to pay interest and compensation, as the case may be, the adjudicating officer may, by order in writing, order payment of interest as specified in rule 15 and such compensation as he thinks fit, as the case may be, in accordance with the provisions of the Act or the rules and regulations, made thereunder; or

(ii) not liable to any interest and compensation, as the case may be, the adjudicating officer may, by order in writing, dismiss the complaint, with reasons to be recorded in writing.

(j) If any person fails, neglects or refuses to appear, or present himself as required before the adjudicating officer, the adjudicating officer shall have the power to proceed with the inquiry in the absence of such person or persons after recording the reasons for doing so. 

(3) The procedure for day to day functioning of the adjudicating officer, which have not been provided by the Act or the rules made thereunder, shall be as specified by regulations made by the Authority. 

(4) Where a party to the complaint is represented by an authorised person, as provided under section 56, a copy of the authorisation to act as such and the written consent thereto by such authorised person, both in original, shall be appended to the complaint or the reply to the notice of the complaint, as the case may be.

BUDGET AND REPORT  

40. Budget, accounts and audit.

(1) At the end of the financial year of every year, the Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts in Form ‘K’. 

(2) The Authority shall preserve the accounts and other relevant records prepared under sub-rule (1) for a minimum period of five years. 

(3) The accounts and other relevant records under sub-rule (1) shall be signed by the Chairperson, Members, Secretary and the officer-in-charge of Finance and Accounts. 

(4) The accounts of the Authority and the audit report shall, as soon as possible, be submitted to the Government for laying before the Parliament.  

41. Annual Report.—

(1) The Authority shall submit its annual report in such manner as may be specified by the regulations. 

(2) The Authority may also include in the Annual Report such other matters as deemed fit by the Authority for reporting to the Government. 

(3) The annual report shall, after adoption at a meeting of the Authority and signed by the Chairperson and Members and authenticated by affixing the common seal of the Authority, with requisite number of copies thereof, be submitted to the Government within a period of one hundred and eighty days immediately following the close of the year for which it has been prepared.