Section 72 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 71 says the adjudicating officer decides compensation or interest. Section 72 tells the officer what to look at in fixing the amount. There are four factors: the disproportionate gain or unfair advantage made by the defaulter, the loss caused, the repetitive nature of the default and any other factor that the officer considers necessary in furtherance of justice. If you are preparing a compensation claim, our consumer complaint filing team can help you build the evidence for each factor.
"While adjudging the quantum of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due regard to the following factors": (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused as a result of the default; (c) the repetitive nature of the default; (d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice. The section lists factors; it gives no formula and no cap.
Section 72 at a glance
| Clause | Factor | Wording in the Act |
|---|---|---|
| (a) | Gain by the defaulter | "the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default" |
| (b) | Loss to the claimant | "the amount of loss caused as a result of the default" |
| (c) | Pattern | "the repetitive nature of the default" |
| (d) | Residual | "such other factors which the adjudicating officer considers necessary to the case in furtherance of justice" |
Who and what the section governs
Section 72 applies "while adjudging the quantum of compensation or interest, as the case may be, under section 71". So it is a guide for the adjudicating officer deciding compensation or interest under sections 12, 14, 18 and 19; see our article on section 71. It does not govern the penalties the Authority imposes under Chapter VIII, which are set as a percentage ceiling by their own sections; see Penalties Under RERA.
The phrase is "shall have due regard to". That is mandatory: the officer must consider each listed factor, but "due regard" does not mean each factor must lead to a particular number, and the section does not give any weight to one over another.
The four factors
(a) Disproportionate gain or unfair advantage, "wherever quantifiable"
This looks at the defaulter's side of the ledger: what the promoter, agent or allottee gained out of the default. For example, a promoter who kept an allottee's money for years without delivering has had the use of that money. The words "wherever quantifiable" mean that the factor applies when the gain can be measured; if it cannot, the officer is not required to invent a figure. The text does not say how it is to be measured.
(b) The amount of loss caused
This looks at the claimant's side: the amount of loss caused as a result of the default. Here the text does not use "wherever quantifiable", but in practice the amount must be shown by documents. Rent paid during delay, interest on loans taken for the purchase and costs of repair are the kinds of loss that a claimant might evidence. The Act itself does not list heads of loss, so what counts is for the officer, on the evidence.
(c) The repetitive nature of the default
This factor looks at pattern. A first-time slip and a promoter who defaults project after project are not the same, and the section tells the officer to take the repetition into account. The text does not define "repetitive" or say over what period or how many instances.
(d) Other factors "in furtherance of justice"
The residual clause lets the officer weigh "such other factors which the adjudicating officer considers necessary to the case in furtherance of justice". It is an open clause, left to the officer's judgment on the facts of each case. The text gives no examples.
What the section does not say
- It does not state a formula, a minimum or a maximum for compensation.
- It does not say how to combine the factors, or whether any one is decisive.
- It does not tie compensation to a rate of interest; where interest applies, the rate comes from the specific section and the State rules (section 84(2) lists the rate-of-interest matters under sections 12, 18 and 19).
- It does not say whether the officer must give reasons. Natural justice and the Act's other provisions, such as the hearing in section 71(1), apply.
How to use the factors in a claim
For a claimant:
- Document the loss (b): receipts, agreements, rent paid, loan statements.
- Show any gain (a) the other side made: for example, the amounts received and the time over which they were held.
- Show repetition (c) if the same builder or agent has defaulted before in the same project or others, and you can point to records.
- Raise anything else in (d): for example, the effect on your family.
For a respondent, the same four headings are a checklist for the defence: show that any gain is not disproportionate, that the loss is overstated, that the default was one-off, and that other circumstances warrant a lower amount.
| Item | A claimant should bring | A respondent should bring |
|---|---|---|
| (a) Gain | Proof of amounts held and benefit enjoyed | Proof of costs incurred and no unfair advantage |
| (b) Loss | Receipts and statements | Evidence that loss is not caused by the default |
| (c) Repetition | Records of earlier defaults | Clean record |
| (d) Other | Circumstances of hardship | Circumstances of the project |
Example. Mr and Mrs Nair paid Rs 40 lakh towards an apartment that was not delivered. They claim compensation from Horizon Builders. Under (a) the officer looks at what Horizon gained by holding the money; under (b) at the loss shown by their rent receipts and loan interest; under (c) at whether Horizon has defaulted in other projects; and under (d) at anything else justice requires. The Act gives no figure; the officer must reason from these factors to an amount.
An order of the adjudicating officer for compensation is recoverable under section 40(1) if unpaid, and can be appealed to the Appellate Tribunal under section 44. See our article on section 40 and our article on section 44. For delay compensation specifically, see Delay in Possession: Compensation Under RERA.
Need help with a compensation claim?
The strength of a claim lies in evidence matched to the four factors. We can review your papers, tabulate the loss and prepare the application for the adjudicating officer. Contact us for consumer complaint filing.
Key takeaways
- Section 72 lists four factors the adjudicating officer must have due regard to.
- They are unfair gain, loss caused, repetitive default and other factors in furtherance of justice.
- The section applies to compensation or interest under section 71, not to Authority penalties.
- It gives no formula, cap or weight.
- Evidence of each factor strengthens a claim or a defence.
Read next
- Section 71: adjudicating officer and compensation
- Section 18: return of amount and compensation
- Delay in Possession: Compensation Under RERA
- RERA Complaint Process: How to File Online
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.