INTRODUCTION

The Real Estate Regulation and Development Act of 2016 (RERA) was introduced in order to increase transparency, efficiency, and accountability in the Indian real estate market. Although the Act primarily regulates promoters and agents and protects homeowners, it also creates an extensive legal structure to look into infringements and assess penalties for non-compliance.

Chapter VIII of the Act, which deals with RERA penalties India Offences, and Adjudication, is an important section that establishes rigorous procedures to punish defaults by promoters, agents, and even allottees (buyers). This chapter assures that RERA regulations are not only advisory, but also enforceable through strict monetary fines, incarceration, and legal reparation processes.

OFFENCE UNDER RERA AND WHO CAN BE LIABLE?

RERA separates violations into numerous categories based on the role of the parties involved and the nature of the violation.

OFFENCES BY PROMOTERS

The primary responsibility of registering real estate projects and providing accurate disclosure falls on promoters. The offence includes:

Non-registration of projects are required under section 3 of RERA
Providing false or misleading information in documents filed under section 4.
Contravening any other provisions of the act, or the rules and regulation made there under.
Failing to comply with orders and directions of Real Estate Regulatory Authority or Appellant Authority.

OFFENCE BY REAL ESTATE AGENTS

Real estate representatives are required to register and comply with to the established code of conduct. Among their offenses are:

Facilitating transaction without registration, as required by section.9
Contraventions of section 9 and section 10.
Failure to follow directives or directions issued by the Authority or the Appellant Tribunal.

OFFENCES BY THE BUYERS (ALLOTTEES)

Every allottees have obligation under RERA, such as complying with the orders of the Authority or the Appellate Tribunal. Failure to do so constitutes an offence.

CORPORATE LIABILITY

According to RERA, if a company commits an offense, not only is the company accountable, but the individual in charge of and accountable for the operation of the business will also be held accountable. This guarantees that businesses cannot avoid accountability by disguising themselves as corporations.

PENALTIES FOR RERA NON-COMPLIANCE DEVELOPERS INDIA

PENALTY FOR NON- REGISTRATION (SECTION 59)

A promoter may be penalized up to 10% of the real estate project's estimated cost if they do not register their project as required.

The promoter may be subject to a three-year prison sentence, an additional fine of up to 10% of the project cost, or both if they continue to violate the registration requirements or disregard orders issued under this section.

The aim of this significant penalty is to prevent promoters from starting businesses without the required paperwork and surveillance.

PENALTY FOR PROVIDING FALSE INFORMATION OR CONTRAVENING SECTION 4 (SECTION 60)

Promoters who give inaccurate information or fail to comply with the filing and disclosure requirements under section 4 may face penalties of upto 5% of the project’s project cost.

PENALTY FOR OTHER VIOLATIONS (SECTION 61)

A fine of up to 5% of the real estate project’s estimated cost may be imposed on the promoter for violating any other act, rule, or regulation (other than section 3 and section 4).

PENALTY FOR FAIURE TO COMPLY WITH AUTHORITY OR TRIBUNAL ORDERS (SECTION 63 AND 64)

Failure to comply with the orders of the authority can lead to a daily penalty, accumulating to maximum of 5% of the project cost.

Non-compliance with orders of the appellant tribunal may result in imprisonment for up to three years or a fine up to 10% of the project cost, or both.

These provisions ensure that developers comply with regulatory directives and provide a legal consequence for persistent defaulters.

PENALTIES FOR REAL ESTATE AGENTS

PENALTY FOR NON-REGISTRATION AND CONTRAVENTIONS (SECTION 62)

Real estate agents who fails to register as required of contravene section 9 and section 10 are liable to pay a penalty of Rs.10,000 per day during the period of default.
Fine can be extend up to 5% of the cost plot, apartment, or building for which the sale or purchase has been facilitated.

PENALTY FOR FAILURE TO COMPLY WITH AUTHORITY OR TRIBUNAL ORDERS (SECTION 65 AND 66)

Non-compliance with the authority instruction may result in a daily fine up to 5% of the estimated cost of the property.
Disobeying Appellant Tribunal Orders may result a fine up to 10% of the estimated cost, a term of one year imprisonment, or both.

These penalties ensure that agents carry out their responsibilities in an unbiased and accountable manner.

PENALTIES FOR ALLOTTEES

The following penalties may be imposed on allottees who disregard directives from the Authority or Appellate Tribunal:

Authority’s orders: Penalty up to 5% of the cost of the plot, apartment, or building.
Appellate Tribunal’s orders: Imprisonment up to one year or a fine up to 10% of the cost, or both.

PENALTIES ON COMPANIES AND THEIR OFFICERS (SECTION 69)

When a company commits an offense:

The company is considered guilty, as are the individuals who oversee its operations (e.g., directors or partners).
These individuals can defend themselves by demonstrating that they were unaware of the offense or that they took reasonable precautions to avoid it.
Officers who participated in the crime or gave their consent are also held accountable.

This provision reinforces personal accountability for corporate misconduct.

HOW LAWFINITY CAN ASSIST YOU IN TACKLING THE ISSUE?

Here’s where Lawfinity steps in:

Seamless document compilation: We help promoters prepare full documentation—approvals, escrow proofs, timelines—so you're not guessing.
Guidance through RERA portals: We assist with honest, step-by-step filing on state-specific or unified RERA portals.
Compliance tracking: Need to upload CC/OC, track QPRs, or escrow audits? We send reminders and help with timely compliance—helping you avoid those ₹1,000/day or ₹5,000/quarter penalties.
Representation for disputes: If RERA issues a notice or penalty, Lawfinity stands with you—from filing appeals to negotiating settlements.
Post-registration support: From advertising compliance (RERA number and QR code) to reporting obligations, Lawfinity’s there till project closure.

No more fumbling over forms or missing deadlines—Lawfinity makes RERA registration and compliance feel (almost) enjoyable.

MUSINGS FROM THE AUTHOR’S INK

RERA prohibitions India's strictness is an expression of the hurt caused by previous breaches in the

sector's trust. However, RERA has compelled the industry to clean up despite its complexity. A promising next step is the unified portal, which will help make enforcement equitable, data transparent, and compliance simpler. Yes, it means diligence for builders, but it's finally a system with teeth for buyers.

We believe RERA is crucial because I have witnessed buyers being duped by unregistered projects and small builders becoming anxious over registration fees. All we have to do is follow the law, make use of resources like Lawfinity, and keep in mind that while transparency requires work, trust is invaluable.