Penalties and Punishments for Non compliances by Promoters under RERA (Real Estate Regulation and Development Act, 2016)
Introduction:
This article discusses in detail Penalties and Punishments for Non compliance by Promoters & compounding of offences under of RERA (Real Estate Regulation and Development Act, 2016).
Penalty & Punishments
| Section | Offence | Penalties / Punishment |
| 59(1) | If any promoter does advertising, marketing, booking, selling etc. of a real estate project without first registering the project with RERA u/s 3 | Penalty up to 10% of estimated project cost as determined by the authority. |
| 59(2) | If any promoter does comply with the orders, decisions or direction in relation to above penalty or continues to violate section 3 | I. Imprisonment up to 3 years; or
II. Fine up to up to 10% of estimated project cost as determined by the authority, or III. With both However, this offence is compoundable. |
| 60 | If any promoter provides false information or fails to apply for registration wit in the time stipulated u/s 4(1) | Penalty up to 5% of estimated project cost as determined by the authority. |
| 61 | If any promoter contravention any other provisions of this Act or rules or regulations made there under. | Penalty up to 5% of estimated project cost as determined by the authority. |
| 63 | If any promoter fails to comply with, or contravenes any order or directions of the Authority | Penalty for every day during which default continues, which may cumulatively extend up to 5% of estimated project cost as determined by the authority. |
| 64 | If any promoter fails to comply with, or contravenes any order or decision or directions of the Appellate Tribunal | I. Imprisonment up to 3 years; or
II. Fine for every day during which default continues, which may cumulatively extend up to 10% of estimated project cost as determined by the authority., or III. With both. |
| 123 | 123 | 123 |
Compounding of offences by Court –Section 70
Notwithstanding Code of Criminal Procedure, 1973, if any person is punished with imprisonment under this Act:
1. The court may compound the offence on paying 10% of estimated cost of the real estate project.
2. The promoter shall comply with orders of Appellate Tribunal within period of not more than 30 days of compounding orders of court.
3. On such payment and compliance of court order, the promoter who is in custody shall set at liberty and no proceeding shall be instituted or continued against such person.
4. The acceptance of such money for compounding shall be deemed to be an acquittal order.
Offences by Company
1. In case of offence by company or partnership firm, Officer in charge as well as company shall be deemed to be guilty of the offence and be liable to be proceeded accordingly.
2. Such person shall not be liable for punishment if he proves that offence was committed without his knowledge or that he exercise all due diligence to prevent such offence.
3. Where an offence under this Act has been committed by company or partnership firm, and it is proved that the offence was committed with the consent or connivance of or due to neglect of any director or partner, manager, secretary or any other officer of the organization, then such person shall also be deemed to be guilty of that offence and be liable to be proceeded against and punished accordingly.
The author is a practising CA and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91 9953587496.
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