Penalties under Real Estate Act 2016

By | May 11, 2016

The Real Estate (Regulation and Development) Act, 2016

Penalties under Real Estate Act

Penal Provisions

Chapter VIII of the Act contains the provisions relating to Offences, Penalties and Adjudication. The quantum of the penalty is severe which is evidenced from the following table:

Nature of contraventions Penalties
Section 59(1): Contravenes the provisions of section 3 (Failure to get Registration of Real Estate Project) Liable to penalty which may extend upto 10% of the estimated cost of the real estate project.
Section 59(2): Failure to comply with the order issued under section 59(1) or continues to violate the provisions of section 3. Liable for imprisonment for a term which may extend up to 3 years or with fine which may extend upto a further 10% of the estimated cost of the real estate project or with both.
Section 60: Penalty for contravention of section 4 Liable to a penalty which may extend up to 5% of the estimated cost of the real estate project, as determined by the Authority
Section 61: Penalty for contravention of other provisions of the Act. Liable to a penalty which may extend up to 5% of the estimated cost of the real estate project as determined by the Authority
Section 62: Penalty for non-registration and contravention under sections 9 and 10. Liable to a penalty of Rs. 10,000 for every day during which such default continues, which may cumulatively extend up to 5% of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated
Section 63: Penalty for failure to comply with orders of Authority by promoter. Liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% of the estimated cost of the real estate project.
Section 64: Penalty for failure to comply with orders of the Appellate Tribunal by promoter. Punishable with imprisonment for a term which may extend up to 3 years or with fine for every day during which such default continues, which may cumulatively extend up to 10% of the estimated cost of the real estate project, or with both.
Section 65: Penalty for failure to comply with orders of Authority by real estate agent. Liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated and as determined by the Authority.
Section 66: Penalty for failure to comply with orders of the Appellate Tribunal by real estate agent. Punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to 10% of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated, or with both.
Section 67: Penalty for failure to comply with orders of Authority by allottee. Liable to a penalty for the period during which such default continues, which may cumulatively extend up to 5% of the plot, apartment or building cost, as the case may be, as determined by the Authority
Section 68: Penalty for failure to comply with orders of Appellate Tribunal by allottee Punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to 10% per cent. of the plot apartment or building cost, as the case may be, or with both.

 

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