OFFENCES, PENALTIES & ADJUDICATION UNDER RERA

1. Punishment for Non-Registration (Section 3)

• Penalty: Up to 10% of the estimated cost of the real estate project as determined by the Authority.
• Further Punishment: If the promoter continues the violation, punishment may include imprisonment up to 3 years or an additional fine up to 10% of the project cost, or both.

2. Penalty for False Information (Section 4)

• If a promoter provides false information or contravenes Section 4, they shall be liable for a penalty of up to 5% of the estimated project cost.

3. Penalty for Contravention of Other Provisions (Section 61)

• For violations other than Section 3 & 4, the penalty can be up to 5% of the project cost as determined by the Authority.

4. Non-Compliance by Real Estate Agents (Sections 9 & 10)

• Daily Penalty: ₹10,000 per day for continued non-compliance.
• Cumulative Penalty: Can extend up to 5% of the cost of the property involved in the transaction.

5. Failure to Comply with Authority Orders (Section 63 & 65)

• For Promoters & Agents: A penalty of up to 5% of the project cost for non-compliance with Authority directives.
• For Allottees (Section 67): A penalty up to 5% of the property cost for failure to comply.

6. Failure to Comply with Appellate Tribunal Orders (Sections 64, 66 & 68)

• Promoters: Imprisonment up to 3 years or daily fines up to 10% of the project cost.
• Real Estate Agents: Imprisonment up to 1 year or fines up to 10% of the project cost.
• Allottees: Imprisonment up to 1 year or fines up to 10% of the property cost.

7. Offences by Companies (Section 69)

• If an offence is committed by a company, persons responsible (Directors, Managers, Officers) are deemed guilty unless they prove lack of knowledge or due diligence.
• If an offence is committed with consent or negligence of a director/manager, they are also deemed guilty.

8. Compounding of Offences (Section 70)

• Certain punishments (excluding imprisonment) may be compounded by the court with prescribed payment, not exceeding the maximum fine applicable.

9. Power to Adjudicate (Section 71)

• Adjudicating Officer: A judicial officer (District Judge) appointed to adjudicate compensation cases under Sections 12, 14, 18, & 19.
• Decision Timeline: Cases should be resolved within 60 days; delays must be justified in writing.
• Inquiry Powers: Can summon witnesses and demand documents.

10. Factors Considered for Compensation (Section 72)

• Unfair gains from default (where quantifiable).
• Loss incurred due to default.
• Repetitive nature of violations.
• Other factors ensuring fair justice.