⚖️ Know the Law Before You Build, Sell, or Invest
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to bring order, fairness, and transparency into the chaotic real estate sector. It’s not just a compliance checkbox — RERA is a legal framework with teeth. If you’re a builder, agent, or buyer, here’s how things can go south if you violate RERA regulations — and what it might cost you.
🚧 Offences Under RERA: Who’s Liable?
RERA doesn’t just penalize promoters. Buyers, agents, and even company directors can face punishment if they violate the Act. Directors and officers of a company are personally liable unless they prove ignorance or due diligence.
🚫 Penalties for Promoters (Builders)
1. Marketing/Selling Without RERA Registration
- 📌 Penalty: Up to 10% of estimated project cost
- 🚨 If default continues: Imprisonment up to 3 years and/or additional fine up to 10%
2. False or Misleading Information During Registration
- 📌 Penalty: Up to 5% of estimated project cost
3. Violation of Other RERA Provisions
- 📌 Penalty: Up to 5% of project cost
4. Non-compliance with Authority Orders (Section 63)
- 📌 Penalty: Daily fine, capped at 5% of project cost
5. Disobeying Appellate Tribunal (Section 64)
- 📌 Penalty: Daily fine up to 10%
- 🚨 Plus: Jail up to 3 years
🧾 Penalties for Real Estate Agents
1. Unregistered Agent Dealing with RERA Properties
- 📌 Penalty: ₹10,000 per day, up to 5% of deal value
2. Misleading Clients or Violating Section 9 & 10
- 📌 Same penalty as above (₹10,000/day, capped at 5%)
3. Non-compliance with Authority Orders (Section 65)
- 📌 Penalty: Daily fine up to 5% of deal value
4. Disobeying Appellate Tribunal (Section 66)
- 📌 Penalty: Jail up to 1 year and/or daily fine up to 10%
🏠 Penalties for Buyers (Allottees)
1. Failure to Follow RERA Authority Orders (Section 67)
- 📌 Penalty: Daily fine up to 5% of the deal value
2. Disregarding Appellate Tribunal Orders (Section 68)
- 📌 Penalty: Imprisonment up to 1 year and/or daily fine up to 10%
🔄 Compounding of Offences (Section 70)
Some RERA offences are compoundable — meaning you can avoid prosecution by paying a fine up to the maximum prescribed. Once paid, no criminal case continues. This only applies to offences where imprisonment is involved.
👨⚖️ Adjudicating Officer & Compensation Process (Section 71–72)
An appointed adjudicating officer (AO) handles compensation claims — including:
- Delay in handover
- False promises
- Structural defects
- Loss due to builder negligence
🕒 Time limit: 60 days (extendable with reason)
🔍 The AO can summon, examine, and enforce decisions.
💰 Compensation depends on:
- Actual loss
- Unfair gain by defaulter
- Repeat offences
- Equitable justice
✅ Stay Protected with Verified.RealEstate
Don’t wait for a penalty to learn the law. Whether you’re:
- Buying a flat
- Selling as an agent
- Launching a project as a builder
Verified.RealEstate offers legal advisory, project verification, agent background checks, and real-time RERA tracking tools — so you don’t get blindsided by legal trouble.
🔍 Use our Property Verification Tool before making any real estate move.