Section 70 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 70 lets a court compound a punishment of imprisonment under the Act, which means closing the offence on payment of a sum instead of carrying the case through. It works before or after the prosecution begins, on terms and sums that the rules prescribe, and the sum can never exceed the maximum fine for the offence. If you are facing a prosecution under the Act and want to understand this route, our legal dispute resolution team can explain it.
Notwithstanding the Code of Criminal Procedure, 1973, if any person is punished with imprisonment under this Act, the punishment may, either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed. The sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded. The court compounds; the State rules fix the terms and sums.
Section 70 at a glance
| Element | What the section says |
|---|---|
| Overriding clause | "Notwithstanding anything contained in the Code of Criminal Procedure, 1973" |
| Which offences | Those for which a person "is punished with imprisonment under this Act" |
| When | Before or after the institution of the prosecution |
| Who compounds | The court |
| On what terms | Such terms and conditions and payment of such sums as may be prescribed |
| Ceiling | The sum shall not exceed the maximum fine which may be imposed for the offence |
The text, in parts
"Notwithstanding anything contained in the Code of Criminal Procedure, 1973, if any person is punished with imprisonment under this Act, the punishment may, either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed: Provided that the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded."
Notwithstanding the CrPC. The Code of Criminal Procedure, 1973 has its own scheme of which offences may be compounded and by whom. Section 70 sets that aside for imprisonment-punishable offences under this Act. Note: from 1 July 2024 the Code of Criminal Procedure, 1973 was replaced by the Bharatiya Nagarik Suraksha Sanhita, 2023. The Act is quoted as enacted; we give no new section numbers.
"Is punished with imprisonment". Read literally, the words refer to a person already punished, but they are paired with "before or after the institution of the prosecution", which shows the section is meant to cover offences punishable with imprisonment, including before any conviction. We flag the wording as a drafting point. The offences concerned are those where imprisonment is available:
| Section | Who | Imprisonment | Fine element |
|---|---|---|---|
| 59(2) | Promoter | Up to three years | Or fine up to a further ten per cent of the estimated cost of the project, or both |
| 64 | Promoter | Up to three years | Or fine for every day, cumulatively up to ten per cent of estimated cost, or both |
| 66 | Agent | Up to one year | Or fine for every day, cumulatively up to ten per cent of estimated cost of plot, apartment or building facilitated, or both |
| 68 | Allottee | Up to one year | Or fine for every day, cumulatively up to ten per cent of plot, apartment or building cost, or both |
See our post on section 59 and our article on sections 63 and 64, our article on sections 65 and 66 and our article on sections 67 and 68.
"Compounded by the court". The court, not the Authority, compounds. Section 80 requires a written complaint by the Authority or its authorised officer before a court takes cognizance and sends trial to a Metropolitan Magistrate or Judicial Magistrate of the first class; see our article on sections 79 and 80. The text of section 70 does not say whether the complainant's consent is needed. It is silent, and the State rules may address it.
"Before or after". Compounding may be sought "either before or after the institution of the prosecution". The text does not give a last stage, such as before judgment, so the point is for the court and the rules.
"Such terms and conditions and ... such sums as may be prescribed". Section 84(2)(zb) lets the rules provide for "the terms and conditions and the payment of such sum for compounding of the offences under section 70". The terms and amounts are therefore those of each State's rules, and they differ by State. This article gives no figures.
The ceiling
The proviso is a firm limit: "the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded." Where the fine is a daily fine capped at a percentage of estimated cost, the ceiling is that cap; where the Act states a fine "up to a further ten per cent", it is that figure. The section does not say how a ceiling is computed where the Act has no money fine; for each offence above, the Act does state one.
What compounding does not do
- It does not touch a penalty imposed under sections 60 to 63, 65 and 67, which are worded as penalties, not as imprisonment-punishable offences.
- It does not cancel the allottee's right to interest or compensation under sections 12, 14, 18 and 19 from the adjudicating officer; see our article on section 71.
- It does not excuse a failure to carry out the underlying order. The text is silent on whether compounding discharges the order.
Example. A promoter is prosecuted for failing to obey a Tribunal order under section 64. The maximum fine is ten per cent of the estimated cost of the project. If the State rules allow compounding on payment of a sum, the court may compound the offence, but the sum cannot exceed ten per cent of the estimated cost. If the promoter had been charged under section 59(2) the same logic applies to the maximum fine there.
Need help with a prosecution under the Act?
Compounding is a State-rule-driven route and its terms vary. We can read the complaint, the State rules and the likely ceiling with you and help prepare the application. Reach out to legal dispute resolution.
Key takeaways
- Section 70 allows the court to compound imprisonment-punishable offences, before or after prosecution begins.
- It applies despite the Code of Criminal Procedure, 1973.
- Terms and sums are as prescribed by State rules.
- The sum cannot exceed the maximum fine for the offence.
- Pure penalties and civil compensation are outside section 70.
Read next
- Section 69: offences by companies
- Sections 79 and 80: bar of civil court jurisdiction and cognizance of offences
- Penalty for Non-Registration Under RERA: Section 59
- Penalties Under RERA: Promoter, Agent, Allottee
Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.