Answer By law4u team
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to ensure transparency, accountability, and efficiency in the real estate sector. Non-compliance with RERA regulations attracts various penalties and punishments for promoters, real estate agents, and allottees. Below are the key penalties for non-compliance with RERA regulations: 1. Penalties for Promoters: a. Non-Registration of Project: Penalty: If a promoter fails to register a real estate project with the RERA authority, they can be fined up to 10% of the estimated cost of the project. b. Continuing Non-Compliance (Non-Registration): Penalty: If the promoter continues to advertise, market, book, sell, or offer to sell any real estate project without registration, they can face imprisonment for up to three years or a fine that may extend to 10% of the estimated cost of the project, or both. c. Providing False Information: Penalty: If a promoter provides false information or fails to provide required information while registering the project, they may be fined up to 5% of the estimated cost of the project. d. Failure to Comply with RERA Orders: Penalty: If a promoter fails to comply with the orders, decisions, or directions of the RERA authority, they can be fined up to 5% of the estimated cost of the project. 2. Penalties for Real Estate Agents: a. Non-Registration: Penalty: If a real estate agent fails to register with RERA, they can be fined up to ₹10,000 per day during the period of default, which may extend up to 5% of the cost of the property sold or handled by the agent. b. Failure to Comply with RERA Orders: Penalty: If a real estate agent fails to comply with the orders, decisions, or directions of the RERA authority, they can be fined up to 5% of the cost of the property sold or handled by the agent. 3. Penalties for Allottees (Buyers): a. Failure to Comply with RERA Orders: Penalty: If an allottee fails to comply with the orders, decisions, or directions of the RERA authority, they can be fined up to 5% of the cost of the property in question. 4. Additional Provisions: a. Penalty for Appeals: Penalty: If any promoter, real estate agent, or allottee files an appeal with the Appellate Tribunal without complying with the orders of the RERA authority, they are required to first deposit a minimum of 30% of the penalty or a higher percentage as directed by the Tribunal. b. Penalty for Delays: Interest on Delays: If the promoter delays the possession of the property, they are liable to pay interest to the allottees at a rate specified by the RERA authority. The interest rate is typically the same as the interest rate charged by the promoter to the allottees for payment delays, ensuring parity. Conclusion: The penalties under RERA are designed to enforce compliance and deter malpractices in the real estate sector. They ensure that all stakeholders—promoters, real estate agents, and allottees—adhere to the rules, thus protecting the rights of consumers and bringing transparency to the sector.
