Offences and Penalties Prescribed In RERA

The Real Estate (Regulatory and Development) Act, 2016 is the first regulations in Real Estate Sector to regularize. At one place, where the Act specifies the details rules and regulation for proper registration and transparency, the Act also prescribes penalty for different kind of offenses.

We are summarizing offence-wise penalties so that right compliance can be done at right time.

A. Offence-wise Penalties for Promotors

S. No Offence Penalty
1. Non-registration of a project 10% of the estimated cost of real estate project
2. Not obeying orders or direction in connection with the above offence Imprisonment upto 3 years with an or without fine being 10% of the estimated cost of real estate project
3. Providing false information etc. 5% of the estimated cost of real estate project
4. Other contravention 5% of the estimated cost of real estate project
5. Contravention of any order of the RERA Penalty for every day of defaults which may cumulatively extend up to 5% of the estimated cost of real estate project
6. Contravention of the orders or direction of the appellate tribunal Imprisonment upto 3 years with or without fine which may cumulatively up to 5% of estimated cost of real estate project.


B. Offence-wise Penalties for Real Estate Agents

S.No Offences Penalties
1. Contravention of the applicable provisions of the Act Rs. 10,000 per day of defaults which may extend up to 5% of the cost of the property whose sale or purchase was facilitated by him
2. Contravention of the orders or direction of the RERA Penalty on a daily basis which may cumulatively extend up to 5% of the estimated cost of the property whose sale or purchase was facilitated by the agent
3. Contravention of the orders or direction of the appellate tribunal Imprisonment upto 1 year with without fine which may extend up to 10% of estimated cost of project.


C. Offence-wise Penalties for Allottees

S.No. Offences Penalties
1. Contravention of any order of the RERA Penalty for the period during which defaults continues which may cumulatively extend up to 5% of the apartment or building cost
2. Contravention of the orders or direction of the appellate tribunal Imprisonment upto 1 year with or without fine for every day during which such defaults continues, which may cumulatively extend up to 5% of the apartments or building cost.

 

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