What is the difference between penalty & compensation?

Compensation is an amount adjudged by the Adjudicating Officer in case of a complaint filed by an allottee / purchaser. This amount has to be paid to the allottee / purchaser.
Penalty is an amount decided by the Authority or Appellate Tribunal in case of violation of any of the provisions of the act, rule or regulation under RERA. This amount is to be paid to the Authority or the Tribunal.