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RERA Real Estate Bill 2017 – Part 5 – Offences, Penalties and Adjudication

Common Questions and Clarifications on RERA 2017: Part 5

In the final Part 5 of this series, Chennai Dream Homes™ will aim to simplify information – specifically on Offences, Penalties and Adjudication under the new RERA Real Estate Bill. We hope you find this useful.

This post series is divided into 5 parts.

Part 1 talked about the Basics of RERA.

Part 2 covered Registration of Real Estate Projects and Real Estate Agents under RERA Real Estate Bill.

Part 3 focused on Duties of the Promoters and Allottees in RERA Real Estate Bill.

Part 4 focused on the Real Estate Regulatory Authority, Central Advisory Council & Appellate Tribunal.

Part 5 will focus on Offences, Penalties and Adjudication in RERA Real Estate Bill. (this post)

We will attempt to update this resource and adhere to appropriate marketing of property listings on our website as soon as it comes into full force and we have official information.

The original government document on RERA Gazzette Notification can be found here. (Source: Ministry of Housing & Urban Poverty Alleviation, Government of India)

Part 5 – Offences, Penalties and Adjudication in RERA Real Estate Bill

Source: Trident Realty

A. Promoter Penalties

1. What is the punishment prescribed for non-registration of a project under the RERA Real Estate Bill?

As per section 59, where under the RERA Act, it is obligatory for the promoter to register a project with the Authority, and the promoter fails to do the same, he shall be liable to a penalty upto 10% of the estimated cost of the real estate project.

However, in case the promoter consistently defaults or does not comply with the directions / orders of the Authority as regards registration of the project with the Authority, he shall be liable to additional fine of 10% of the estimated cost of the real estate project or imprisonment upto 3 years or both.

2. What is the punishment prescribed for violation of other provisions of the Act by the promoter?

As per section 61, if the promoter defaults any other provision of the Act or the Rules and Regulations made thereunder, he shall be liable to a penalty upto 5% of the estimated cost of the real estate project.

3. What is the punishment prescribed for non-compliance of the orders of the Authority by the promoter?

As per section 63, if the promoter fails to comply with the orders of the Authority, he shall be liable to a penalty for every day of default, which may cumulative extend upto 5 percent of the estimated cost of the real estate project.

4. What is the punishment prescribed for non-compliance of the orders of the Appellate Tribunal by the promoter?

As per section 64, if the promoter fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may cumulative extend upto 10% of the estimated cost of the real estate project or with imprisonment for a term which may extend upto 3 years, or with both.

B. Real Estate Agent Penalties

1. What is the punishment prescribed for non-registration of by a real estate agent under the RERA Real Estate Bill?

As per section 62, where under the Act, it is obligatory for the real estate agent to register himself/herself with the Authority, and the real estate agent fails to do the same, s/he shall be liable to a penalty upto of rupees ten thousand per day of default, which may cumulative extend upto 5% of the cost of the plot / apartment, for which the sale has been facilitated by him/her.

2. What is the punishment prescribed for non-compliance of the orders of the Authority by the real estate agent?

As per section 65, if the real estate agent fails to comply with the orders of the Authority, s/he shall be liable to a penalty for every day of default, which may cumulative extend upto 5% of the cost of the plot / apartment, for which the sale has been facilitated by him/her.

3. What is the punishment prescribed for non-compliance of the orders of the Appellate Tribunal by the real estate agent?

As per section 66, if the real estate agent fails to comply with the orders of the Appellate Tribunal, s/he shall be liable to a penalty for every day of default, which may cumulative extend upto 10% of the cost of the plot / apartment, for which the sale has been facilitated by him/her or with imprisonment for a term which may extend upto 1 year, or with both.

C. Allottee Penalties

1. What is the punishment prescribed for non-compliance of the orders of the Authority by the allottee under the RERA Real Estate Bill?

As per section 67, if the allottee fails to comply with the orders of the Authority, s/he shall be liable to a penalty for every day of default, which may cumulative extend upto 5% of the cost of the plot / apartment.

2. What is the punishment prescribed for non-compliance of the orders of the Appellate Tribunal by the allottee?

As per section 68, if the allottee fails to comply with the orders of the Appellate Tribunal, s/he shall be liable to a penalty for every day of default, which may cumulative extend upto 10% of the cost of the plot / apartment or with imprisonment for a term which may extend upto 1 year, or with both.

D. Adjudicating Officer

1. What is the role of the Adjudicating Officer?

The Adjudicating Officer is a quasi-judicial person who is mandated to adjudicate on disputes arising under section 12, 14, 18 and section 19. The Adjudicating Officer shall be a person who is or has been a District Judge.

2. What are the factors that need to be taken into account by the Adjudicating Officer while deciding a dispute under sections 12, 14, 18 and 19 of the Act?

The Adjudicating Officer shall, while deciding the disputes under section 12, 14, 18 and 19 of the Act, have regard to:

  • the amount of disproportionate gain or unfair advantage
  • the amount of loss
  • repetitive nature of the default
  • and such other factors that the Adjudicating Officer may consider necessary in furtherance of justice.

This concludes our FAQ series on RERA. We hope you found this content helpful!