Penalty by Real Estate Regulatory Authority RERA

Civil Engineer / Content Writer

Real Estate Regulatory Authority (RERA) is a branch of state or union territory government which ensure the efficient and transparent sale of the real estate projects like apartments, buildings & plots, etc. in the interest of buyers.

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Also Read: 17 Common Problems You May Face While Buying the Flat/House

The Real Estate (Regulation and Development) Act, 2016 – (Section 3):

Promoters or developers shall not advertise, market, book, sell, or purchase any project (plot, apartment or building, etc.) (Which has development area larger than 500 Sqm or more than 8 Nos of apartment inclusive of all phase) without registration with the real estate regulatory authority RERA.

The Real Estate (Regulation and Development) Act, 2016 – (Section 4):

The developers or promoters have to apply for the registration to RERA. The developers or promoters have to enclose the details of developer’s enterprise and details of project like sanctioned plans, layout plans, specifications of the project, government approvals documents, development plans, legal clearance of land title, allotment letter, agreement for sale, carpet area, details of real estate agents, engineers/structural engineers, architects, contractors and funding documents.

01. Punishment for Non-Registration with RERA (Under section 3):

The real estate promoters or developers who have not registered the project (plot, building, apartment, etc.) under the real estate regulatory authority shall be responsible for the penalty of up to10% of the estimated cost of the real estate project.

If they continue to violate the provisions, they shall be liable for imprisonment which is up to 3 years or fine up to 10% of the estimated cost of the real estate project. RERA has the authority to impose both the penalties at the same time.

02. Penalty for Submitting False Information to RERA (Under Section 4):

When the developers or promoters submit any falls details of the related project (plot, building, apartment, etc.) to the real estate regulatory authority, they can be fine up to 5% of the estimated cost of the real estate project.

03. The Penalty for Violation of Other Rules of The Real Estate (Regulation and Development) Act, Except Section 3 and 4:

When the developers or promoters violate the rules of the real estate (regulation and development) act other than section 3 & 4, then they shall be charged penalty up to 5% of the estimated cost of the real estate project.

04. Penalty to Real Estate Agents for Non-Registration and Violation of Rules Under Section 9 and 10:

When real estate agents do not register with RERA and if their functions are not as specified as the real estate act (regulation and development), then real estate agents can be charged for penalty Rs 10000 for every day during which such fault continues, and it may cumulatively extend up to 5% of the cost of the project (plot, building, apartment, etc.)

05. The Penalty for Failure to Obey the Orders of RERA by Developer/Promoter:

When the developers or promoters fail to fulfil the order of real estate regulatory authority (RERA), they shall be liable to penalty up to 5% of the cost of the plot or project cumulative till the fault continues.

06. The Penalty for Failure to Fulfil the Orders of Appellate Tribunal by the Promoter:

When the developers or promoters don’t follow the orders, decisions or directions of the Appellate Tribunal, they shall be responsible for imprisonment which is up to 3 years or with fine up to 10% of the estimated cost of the real estate project or with both.

07. The Penalty for Failure to Obey the Orders of RERA by a Real Estate Agent:

When the real estate agent fails to comply with the orders or directions of the Real Estate Regulatory Authority (RERA), they shall be penalised up to 5% of the project (plots or buildings or apartments etc.) or as determined by RERA.

08. Penalty when the Real Estate Agents do not Obey the Orders of Appellate Tribunal:

When the real estate agents fail to obey the order or decision of the Appellate tribunal, they shall be penalised with imprisonments up to 1 year or with fine up to 10% of estimated cost of the project (plot or building or apartment etc.) or with both.

09. Penalty to the Buyers, when they Fail to Obey the Orders of RERA:

When the buyers or allottees fail to obey the orders or decisions of the RERA, they shall be penalised up to 5% of the cost of the plot or building or apartment etc.

10. The Penalty for Buyers, when they Fail to Obey the Orders of Appellate Tribunal:

When the buyers fail to follow the orders or directions of the Appellate Tribunal, they shall be punished with imprisonment up to 1 year or with fine up to 10% of the cost of the apartment, building or plot, etc.

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