Heard the learned counsel for the appellants, learned

counsel for the Karnataka Real Estate Regulatory Authority

and the learned counsel for private respondent in both the

appeals.

The appeals are canvassed on a short point that

the appellate authority i.e., Karnataka Real Estate

Appellate Tribunal, Bengaluru, erred in rejecting the

appeals preferred by the appellants, for non-deposit of the

entire sum ordered by way of refund, interest and

compensation, questioning the correctness of the order of

the regulatory authority.

Learned counsel for the appellants would

contend that in terms of sub-section (5) of Section 43 of

the Real Estate (Regulation and Development) Act, 2016,

(hereinafter referred to as ‘the Act, 2016’ for short), it

would suffice and meet the rigors of law if the promoter

deposits 30% of the penalty amount or such higher

amount as may be directed by authority.

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Per contra, learned counsel for the private

respondents would contend that in terms of the judgment

rendered in the case of 'NEWTECH PROMOTERS AND

DEVELOPERS PVT. LTD. Vs. STATE OF UP AND

OTHERS¹, the Hon’ble Apex Court has laid down the law

that insofar as the penalty alone, a discretion is vested