RERA Penalty Quick Reference — All Sections
Section
Violation
Penalty
§59
Developer marketing/selling without RERA registration (Section 3)
Up to 10% of estimated project cost
§59(2)
Developer continues to default after first penalty
Imprisonment up to 3 years + additional fine
§60
Developer providing false information to RERA authority
Up to 5% of estimated project cost
§61
Developer failing to comply with RERA authority orders
Up to 5% of estimated project cost per day
§62
Agent operating without registration (Section 9)
₹10,000 per day of default
§62
Agent facilitating non-compliant project (Section 10)
₹10,000 per day of default
§62
Agent committing unfair trade practice (Section 10(c))
Up to 5% of apartment cost as compensation
§63
Any person failing to comply with RERA Appellate Tribunal order
₹10,000/day or up to 1% of project cost
§64
Any person failing to comply with orders passed under the Act
₹10,000/day or up to 1% of project cost
§65
Promoter fraudulent default / wilful violation
Imprisonment up to 3 years + fine
§66
Agent wilful violation of orders
Imprisonment up to 1 year + fine
§67
RERA authority member making false entry in records
Criminal liability
Developer Penalties in Detail
Section 59 — Marketing Without Registration
A developer who advertises, markets, books, sells, or offers for sale any apartment, plot, or building in a project that should be registered under Section 3 but isn't registered faces:
- First violation: Penalty up to 10% of the estimated cost of the project
- Continuing default: Imprisonment up to 3 years with or without an additional fine of up to 10%
Example: A developer launches a ₹200 crore project without RERA registration. Section 59 penalty: up to ₹20 crore (10% of ₹200 crore). For an individual developer, this is potentially ruinous — which is why enforcement has significant deterrent effect.
Section 60 — False Information
Providing false information to RERA — in registration applications, QPRs, or any filings — attracts a penalty of up to 5% of the estimated project cost. This covers falsified QPR figures, inflated escrow balances, and incorrect completion percentages.
Section 61 — Non-Compliance with RERA Orders
If RERA passes an order against a developer and the developer fails to comply, the penalty is up to 5% of the project cost for every day of continued non-compliance. This provision is used against developers who ignore possession orders, refund orders, and quality rectification orders.
Agent Penalties in Detail — Section 62
Section 62 is the primary penalty provision for real estate agents. It covers violations of Section 9 (registration) and Section 10 (agent obligations):
Operating without RERA registration
Section 9(1) + Section 62
₹10,000 per day of default. No upper cap. 30 days = ₹3 lakh. 90 days = ₹9 lakh. This accumulates from the day you first facilitated a transaction without registration.
Facilitating an unregistered project
Section 10(a) + Section 62
₹10,000 per day for each day the agent continues to market a project that should be RERA registered but isn't. Both the developer (Section 59) and the agent (Section 62) can be penalised simultaneously.
Misrepresentation / unfair trade practice
Section 10(c) + Section 62
Up to 5% of the apartment cost as compensation to the aggrieved buyer. On a ₹1 crore apartment, this is up to ₹5 lakh — paid personally by the agent.
Failure to maintain records
Section 10(b) + Section 62
RERA penalty at authority's discretion, plus inability to defend any complaint due to absence of records — creating compounding liability.
Not displaying RERA number
Section 9(3) + Section 62
₹10,000 per day — treated as continuous violation for each day the registration number is absent from required documents.
Criminal Liability — Sections 65 & 66
Section 65 — Promoter Criminal Liability
Trigger: Wilful violation of RERA orders, fraudulent default, providing false information for escrow withdrawals, misappropriation of buyer funds
Punishment: Imprisonment up to 3 years with or without fine
Key: "Wilful" is the threshold — repeated non-compliance after orders suggests wilful violation
Section 66 — Agent Criminal Liability
Trigger: Wilful violation of RERA orders or directions issued to the agent
Punishment: Imprisonment up to 1 year with or without fine
Key: Criminal liability requires wilful conduct — good-faith errors don't typically attract Section 66
The Adjudicating Officer — Compensation Awards
Section 71 establishes an Adjudicating Officer (AO) — a separate function from the RERA authority — to adjudicate compensation claims. The AO handles claims for:
- Compensation for false information under Section 12
- Compensation for structural defects not rectified under Section 14(3)
- Compensation for loss caused by any RERA violation
- Interest calculations under Section 18
Unlike RERA authority orders (which primarily deal with registration, compliance, and penalties), AO orders deal with money — how much the developer or agent owes the aggrieved buyer.
RERA Appellate Tribunal — The Appeal Path
Any party aggrieved by a RERA authority or Adjudicating Officer order can appeal to the RERA Appellate Tribunal within 60 days of the order. The Appellate Tribunal is chaired by a retired High Court judge. Further appeals go to the High Court on questions of law.
First Order
RERA Authority (complaint) or Adjudicating Officer (compensation)
First Appeal
RERA Appellate Tribunal — within 60 days of order
Second Appeal
High Court — on questions of law only
Further Review
Supreme Court — special leave petition
Pre-deposit requirement
Some states require deposit of penalty amount before appeal is admitted
Enforcement Reality — How Active Is RERA?
MahaRERA — Most Active
Thousands of orders passed, significant developer penalties, recovery proceedings, agent COC enforcement. Buyers generally find MahaRERA responsive.
HRERA (Haryana) — Active
Two functional benches (Gurugram + Panchkula), active complaint processing, developer registration cancellations recorded.
UP-RERA — Active in NCR
Large caseload from Noida/Greater Noida. Several major developer orders. Some recovery challenges.
Other States — Variable
Enforcement quality varies significantly by state. Some states have functioning tribunals with backlogs; others are still maturing.
The Enforcement Trend
RERA enforcement has been progressively strengthening since 2017. States that were inactive in the early years are increasingly processing complaints, passing orders, and even executing recovery against non-compliant developers. The trend for agents: earlier years of operating unregistered may be overlooked — but going forward, enforcement risk is real and increasing.
Understand Every RERA Obligation
CREP™ covers the complete RERA penalty framework — every section, every penalty, and how to structure your practice so compliance is automatic rather than an afterthought.