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Real Estate (Regulation and Development) Act, 2016 – Comprehensive Exam
NotesBackground and Need for RERA Act, 2016The real estate sector in India
was plagued by systemic problems that necessitated regulatory intervention.
Before RERA, homebuyers faced numerous challenges including delayed
project deliveries, fraudulent practices by developers, fund diversion to other
projects, lack of transparency in transactions, misleading advertisements,
unclear title of properties, structural defects without accountability, and
inadequate dispute resolution mechanisms.����The earlier regulatory
framework was fragmented and insufficient to address these concerns.
Buyers had limited legal recourse, and the absence of a unified regulatory
body allowed developers to operate with minimal accountability. The real
estate sector, despite being crucial for housing and infrastructure
development, suffered from information asymmetry and unfair trade
practices that eroded consumer confidence.���Importance and Objectives
of RERA Act, 2016Primary Objectives:Consumer Protection – The Act
primarily aims to protect the interests of homebuyers by safeguarding them
against delays, fraud, and misrepresentation. It empowers buyers with legal
rights and remedies previously unavailable.���Transparency and
Accountability – RERA mandates complete disclosure of project information,
financial details, legal approvals, and timelines, ensuring developers operate
transparently. This reduces information asymmetry between buyers and
developers.����Standardization – The Act introduces uniform practices
and procedures across the real estate sector, bringing professionalism and
standardization to business transactions.���Efficient Dispute Resolution –
RERA establishes a fast-track adjudication mechanism through state-level
regulatory authorities and appellate tribunals, ensuring complaints are
resolved within 60 days (extendable in certain
circumstances).���Promoting Investment – By creating a fair and
transparent environment, RERA aims to boost both domestic and foreign
investment in the real estate sector.���Orderly Growth – The Act promotes
systematic development through efficient project execution and timely
completion.��Financial Discipline – By mandating 70% of collected funds to
be deposited in escrow accounts, RERA prevents fund diversion and ensures
money is used for the intended project.���Purpose of the ActThe Act
serves dual purposes: protecting homebuyers’ rights while regulating
developers’ practices. It establishes a regulatory framework that balances
the interests of all stakeholders – promoters, allottees, and real estate agents
– while ensuring accountability and ethical business conduct. The Act applies
to both residential and commercial real estate projects across India (except
Jammu and Kashmir).����CHAPTER II: REGISTRATION OF REAL ESTATE
PROJECT AND REGISTRATION OF REAL ESTATE AGENTS (SECTIONS 3-
10)Section 3: Prior Registration of Real Estate Project with Real Estate
Regulatory AuthorityMandatory Registration Requirement:No promoter shall
advertise, market, book, sell, or offer for sale any plot, apartment, or building
in any real estate project without registering the project with the Real Estate
Regulatory Authority.���Applicability:Projects where the land area
proposed for development exceeds 500 square metersProjects with more
than 8 apartments (inclusive of all phases)Both new and ongoing projects
(ongoing projects must register within 3 months from Act’s
commencement)��Exemptions from Registration (Section 3(2)):Projects
where land area does not exceed 500 square meters OR number of
apartments does not exceed 8 (inclusive of all phases)Projects that received
completion certificate prior to commencement of the ActRenovation or repair
or redevelopment not involving marketing, advertising, selling, or new
allotment��Important Note: Where a real estate project is developed in
phases, every phase shall be considered a standalone project requiring
separate registration.��Penalties for Non-Compliance:Failure to register
attracts penalties up to 10% of estimated project cost under Section 59.
Continued violation can result in imprisonment up to 3 years and/or
additional fine up to 10% of project cost.���Section 4: Application for
Registration of Real Estate ProjectsApplication Process:Every promoter must
submit an application to the Authority in prescribed form, manner, and time,
accompanied by prescribed fees.��Documents Required:Brief details of the
enterprise (name, registered address, type of enterprise, PAN, details of
promoters/directors)Proforma of allotment letter, agreement for sale, and
conveyance deedLegal title deed/lease deed for the landSanctioned plan,
layout plan, and specifications approved by competent authorityPlan of
development works and proposed facilities (including fire safety, drinking
water, emergency evacuation, etc.)Authenticated copy of approvals and
commencement certificateNumber, type, and carpet area of apartments for
saleDeclaration supported by affidavit stating:Promoter has legal title to the
landLand is free from encumbrancesTime period for project completion70%
of amounts received from allottees will be deposited in separate bank
account���Section 5: Grant of RegistrationAuthority’s Action:Within 30
days from receipt of application, the Authority shall either:Grant registration
– Issue registration number, Login ID, and password to enable promoter to
access website and create project webpage, ORReject application – Record
reasons in writing for rejection���Grounds for Rejection:Application not
conforming to provisions of the Act or containing false information.�Hearing
Opportunity:The Authority must provide opportunity to the applicant to be
heard before rejecting the application.�Section 6: Extension of
RegistrationCircumstances for Extension:Registration may be extended due
to:Force Majeure – War, flood, drought, fire, cyclone, earthquake, or any
other natural calamity affecting regular developmentReasonable
circumstances – Without default on part of promoter���Duration:Extension
shall not exceed one year in aggregate.��Application Procedure:Promoter
must apply in prescribed form (Form E) with prescribed fee, supported
by:Detailed grounds for delayAuthenticated copy of project plan showing
current stageValid copies of permissions and approvals with expiry dates
beyond proposed extension period��Authority’s Decision:Authority shall
assess application within reasonable time and grant or reject with recorded
reasons after providing hearing opportunity.��Section 7: Revocation of
RegistrationGrounds for Revocation (Section 7(1)):Authority may revoke
registration if promoter:Makes default in doing anything required by Act,
rules, or regulationsViolates terms or conditions of approvals from competent
authoritiesIndulges in unfair trade practices or makes false or misleading
advertisementsEngages in fraudulent practices���Procedure:Authority
must give 30 days’ written notice stating grounds for proposed
revocationPromoter has right to show cause against proposed
actionAuthority shall consider promoter’s response before final
decision��Discretionary Power (Section 7(3)):Instead of revoking
registration, Authority may permit registration to remain in force subject to
further terms and conditions in the interest of allottees. Such conditions are
binding on the promoter.���Commonly, promoters seek extension under
Section 7(3) when:One-year extension under Section 6 proves
insufficientConsent of at least two-thirds of allottees is obtainedFinancial
statements and completion certificates are submittedRenewed
approvals/NOCs are provided��Consequences of Revocation (Section
7(4)):Upon revocation, Authority may:Debar promoter from accessing its
websiteSpecify promoter’s name in list of defaultersDisplay promoter’s
photograph on Authority’s websiteInform other State Regulatory Authorities
about revocation��Section 8: Obligation of Authority Consequent upon
Lapse or Revocation of RegistrationAuthority’s Duty:When registration lapses
or is revoked, Authority shall consult appropriate government to ensure
remaining development is completed.���Methods for Completion:Through
competent authority (government/municipal body)Through association of
allottees (who have first right of refusal)Any other manner determined by
Authority��Effectiveness:No direction under this section takes effect until
appeal period has expired or appeal is decided.�Section 9: Registration of
Real Estate AgentsMandatory Requirement:No real estate agent shall
facilitate sale or purchase of any plot, apartment, or building in any
registered real estate project without obtaining registration under this
section.��Definition:Real estate agent means any person who facilitates,
for a fee or commission, the sale or purchase of any plot, apartment, or
building in a real estate project registered under the Act.�Application
Process:Agent must submit application to Authority in prescribed form (Form
G), within prescribed time, accompanied by prescribed fee and documents
including:Brief details of enterprise (name, registered address,
type)Particulars of projects and locations where agent intends to facilitate
transactionsAuthentication of requisite declarationsPrescribed registration
fee��Grant of Registration:Within 30 days of receiving application,
Authority shall:Grant registration (issued as Form H with registration number)
valid throughout the State/Union Territory, ORReject application with
recorded reasons after providing hearing opportunity��Validity:Registration
is valid for 5 years and may be renewed for subsequent periods as
prescribed.�Section 10: Functions of Real Estate AgentMandatory
Duties:Facilitate Only Registered Projects – Agents shall not facilitate
transactions in projects not registered under Section 3.�Maintain Records –
Agents must maintain books of account, records, and documents as
prescribed, preserving them for inspection.�Avoid Unfair Trade Practices –
Agents shall not engage in:False or misleading representationsFalsely
claiming certain standards or approvalsAdvertising services not actually
offeredMaking misleading statements about promoters or projects�Facilitate
Information Access – Ensure prospective buyers receive all entitled
documents and information at booking time.�Compliance – Perform other
functions and duties as specified by Authority through regulations.�Penalties
for Non-Compliance:Acting without registration: Fine up to 10% of property
costUnfair trade practices: Penalties and possible criminal prosecutionSerious
breaches: Suspension or revocation of registration�CHAPTER III: FUNCTIONS
AND DUTIES OF PROMOTER (SECTIONS 11-18)Section 11: Functions and
Duties of PromoterWebsite Maintenance (Section 11(1)):Upon receiving Login
ID and password, promoter must create webpage on Authority’s website and
enter all project details for public viewing, including:Details of registration
granted by AuthorityQuarterly updates on:Number and types of
apartments/plots bookedNumber of garages bookedApprovals taken and
pending approvalsStatus of projectOther information and documents as
specified by regulations��Advertisement Requirements (Section 11(2)):All
advertisements or prospectuses must:Mention website address of Authority
prominentlyInclude registration number obtained from AuthorityDisplay
stage-wise time schedule of completion, including civic infrastructure
provisions��General Responsibilities (Section 11(4)):Promoter shall be
responsible fora) Overall Obligations – All obligations, responsibilities, and
functions under Act, rules, regulations, or agreement for sale until
conveyance of apartments/plots to allottees or common areas to association
of allottees.��(b) Title of Land – Not transfer or assign majority rights and
liabilities to third party without obtaining prior written consent from Authority
and two-thirds of allottees (except for banks/financial institutions).�(c) Lease
Certificate – Where project is on leasehold land, obtain lease certificate
specifying lease period and certifying all dues are paid. Make certificate
available to association of allottees.�(d) Essential Services – Provide and
maintain essential services on reasonable charges until maintenance is taken
over by association of allottees.��€ Formation of Association – Enable
formation of association/society/cooperative society of allottees or federation
under applicable laws. In absence of local laws, association shall be formed
within 3 months of majority allottees booking their units.��(f) Conveyance
Deed – Execute registered conveyance deed of apartment/plot/building in
favor of allottee along with undivided proportionate title in common areas to
association of allottees as provided under Section 17.��(g) Payment of
Outgoings – Pay all outgoings (land cost, ground rent, municipal taxes,
water/electricity charges, maintenance charges, mortgage loan interest, etc.)
until physical possession is transferred. Promoter remains liable even after
transfer if outgoings were collected from allottees but not paid.��Section
12: Veracity of Advertisement or ProspectusLiability for False
Information:Where any person books apartment based on information
provided in advertisement or prospectus, and such information proves to be
false, causing loss or damage, the promoter shall compensate the allottee for
such loss.��Protection Against Misleading Claims:This section prevents
developers from making exaggerated or false claims about projects,
amenities, or facilities.��Section 13: Obligation to Enter into Agreement for
SaleAdvance Payment Restriction:Promoter shall not accept more than 10%
of the cost of apartment, plot, or building as application fees, advance
payment, or booking amount from any person without first entering into a
written agreement for sale.��Importance:This provision protects buyers
from exploitation and ensures formal documentation before substantial
payments are made.��Consequences of Violation:Courts have held that
accepting more than 10% without executing agreement violates Section 13,
entitling allottees to refund under Section 18.��Section 14: Adherence to
Sanctioned Plans and Project SpecificationsMandatory Compliance:Promoter
shall:Execute project according to sanctioned plans, layout plans, and
specifications approved by competent authoritiesComplete architectural
consultancy, structural designs, development works in accordance with
approved plansComply with provisions of other applicable laws��Prohibition
on Alterations:Promoter cannot make any alterations or additions to
sanctioned plans without prior written consent of allottees (except as
required by competent authority).�Liability for Structural Defects (Section
14(3)):If any structural defect or deficiency in workmanship, quality, or
provision of services is brought to promoter’s notice by allottee within 5
years from date of possession, promoter shall rectify such defects within 30
days without further charge.���Types of Structural Defects
Covered:Defects in RCC or MS work due to faulty workmanship or
materialsMajor cracks in masonry work resulting from RCC/MS work
failuresDefects due to negligence, inferior materials, or non-adherence to
regulatory codes�Compensation for Non-Rectification:If promoter fails to
rectify within 30 days, allottee is entitled to receive appropriate
compensation.�Section 15: Changes in Plans or Development of
ProjectRestriction on Changes:After booking/sale of any plot, apartment, or
building, promoter shall not make any alterations or additions in sanctioned
plans/specifications without prior written consent of the
allottee.�Exception:Changes ordered by competent authority are
permitted.�Section 16: Insurance of Real Estate ProjectMandatory
Insurance:Promoter shall obtain insurance:For title of land and building as
part of real estate projectFor construction of real estate project covering full
value against damage/loss from fire, earthquake, flood, or other natural
calamitiesFor construction work done by
laborers/contractors/professionals.�Premium Payment:Promoter shall pay all
premiums and charges related to insurance until transfer to allottees or
association of allottees.�Section 17: Transfer of Title Documents to Allottees
or AssociationExecution of Conveyance:After promoter obtains occupancy
certificate, allottees become entitled to conveyance of
apartments/plots/buildings along with proportionate undivided share in
common areas.�Timeframe:Promoter shall execute and register conveyance
in favor of allottee within 3 months from date of occupancy certificate
issuance (or within time specified by State Rules).�Conveyance of Common
Areas:Promoter shall convey undivided proportionate title in common areas
to association of allottees simultaneously with individual
conveyances.�Section 18: Return of Amount and CompensationRight to
Refund (Section 18(1)):If promoter fails to comply or is unable to give
possession of apartment/plot/building:In accordance with terms of
agreement for sale, ORDue to discontinuance of business on account of
suspension/revocation of registration, ORFor any other reasonThe allottee is
entitled to:Full refund of amount paidInterest at prescribed rate (typically
MCLR + 2% per annum)Compensation in prescribed
manner�����Supreme Court Ruling:The right to seek refund with
interest is an absolute and unqualified right vested in allottees. This was
established in landmark cases including Imperia Structures Ltd. V. Anil
Patni.�Non-Execution of Agreement:Courts have held that non-execution of
agreement for sale does not bar allottees from claiming refund, provided
promoter fails to deliver possession within agreed timeline.��Compensation
for Defective Title (Section 18(2)):Promoter shall compensate allottees for
any loss caused due to defective title of land on which project is being
developed. Such claims are not barred by limitation under any law.�Interest
for Delayed Possession (Section 18(3)):If promoter fails to complete or
deliver possession as per agreement, promoter shall pay interest at
prescribed rate to allottees for every month of delay until actual possession
is handed over.�Interest for Delayed Refund:If promoter fails to refund
amount within stipulated time, promoter shall pay interest to allottee at
prescribed rate.�Allottee’s Liability for Default:If allottee defaults in
payment, allottee shall be liable to pay interest at prescribed
rate.�CHAPTER IV: RIGHTS AND DUTIES OF ALLOTTEES (SECTION 19)Section
19: Rights and Duties of AllotteesRights of Allottees:1. Right to Information
(Section 19(1)):Allottees are entitled to obtain information relating
to:Sanctioned plans and layout plans with specifications approved by
competent authorityAll other information and documents as
prescribed���2. Right to Stage-wise Time Schedule (Section
19(2)):Allottees are entitled to know stage-wise time schedule of project
completion, including provisions for water, sanitation, electricity, and other
amenities.��3. Right to Claim Possession (Section 19(3)):Allottees can
claim:Possession of their apartment/plot/building as promisedAssociation of
allottees is entitled to possession of common areas (parks, corridors, parking,
lifts, etc.) as per declaration made during registration.�4. Right to Refund
and Compensation (Section 19(4)):If promoter:Fails to deliver possession as
per agreement, ORHas registration cancelled or suspendedAllottee is entitled
to:Full refund of amounts paidInterest at prescribed rateCompensation for
losses suffered���5. Right to File Complaints:Allottees can file complaints
with RERA Authority for any violation or non-compliance by
promoter.�Duties of Allottees:1. Timely Payment of Amounts (Section
19(6)):Allottees must pay:Purchase price and installments as specified in
agreementShare of registration chargesMunicipal taxesMaintenance
chargesUtility bills (water, electricity, etc.)Ground rentAny other agreed fees
at specified time and place���2. Compliance with Agreement
Terms:Allottees must comply with terms and conditions of agreement for
sale.��3. Interest Liability for Payment Delay (Section 19(7)):Allottees shall
be liable to pay interest at prescribed rate for any delay in payment towards
amounts or charges under Section 19(6).��4. Reduction by Mutual
Agreement (Section 19(8)):Payment obligations and interest liability may be
reduced or waived if promoter and allottee agree mutually in writing.��5.
Participation in Allottee Association (Section 19(9)):Allottees must participate
in formation of association, cooperative society, or federation of
allottees.�6. Taking Physical Possession (Section 19(10)):After promoter
receives occupancy certificate, allottee must take physical possession of unit
within 2 months.�Practical Importance:Section 19 balances promoter’s
obligations with allottee’s rights while ensuring transparency and
accountability in real estate transactions.�CHAPTER V: THE REAL ESTATE
REGULATORY AUTHORITY (SECTIONS 20-40)Section 20: Establishment and
Incorporation of Real Estate Regulatory AuthorityEstablishment:Appropriate
Government (State or Central) shall establish Real Estate Regulatory
Authority within one year from Act’s
commencement.���Flexibility:Appropriate Government of two or more
States/UTs may establish one single AuthorityAppropriate Government may
establish more than one Authority in a State/UT��Interim
Arrangement:Until establishment, appropriate Government may designate
any existing Regulatory Authority or officer (preferably Secretary of Housing
Department) as interim Authority.�Body Corporate:Authority shall be a body
corporate with:Perpetual successionCommon sealPower to acquire, hold, and
dispose of property (movable/immovable)Power to contractCapacity to sue
and be sued��Section 21: Composition of AuthorityMembers:Authority shall
consist of:One ChairpersonNot less than two whole-time MembersAll
appointed by appropriate Government.���Appointment
Process:Chairperson and Members are appointed on recommendations of
Selection Committee consisting of:Chief Justice of High Court or his
nomineeSecretary of Department dealing with HousingLaw
Secretary��Section 22: Qualifications of Chairperson and Members of
AuthorityExperience Required:Persons having adequate knowledge and
professional experience of at least:20 years for Chairperson15 years for
MembersIn fields such as: urban development, housing, real estate
development, infrastructure, economics, technical expertise, planning, law,
commerce, accountancy, industry, management, social service, public
affairs, or administration.��Service Background Requirements:For
Chairperson:Person in State Government service shall not be appointed
unless held post of Additional Secretary to Central Government or equivalent
in Central/State Government.�For Members:Person in State Government
service shall not be appointed unless held post of Secretary to State
Government or equivalent in State/Central Government.�Section 23: Term of
Office of Chairperson and MembersTenure:Chairperson and Members shall
hold office for term not exceeding 5 years from date of joining office OR until
they attain age of 65 years, whichever is earlier.��Eligibility for
Reappointment:Not eligible for reappointment.�Conflict of Interest:Before
appointment, appropriate Government shall satisfy itself that person does
not have any financial or other interest likely to affect prejudicially his
functions.�Section 24: Salary and Allowances Payable to Chairperson and
MembersSalary, allowances, and other terms and conditions of service shall
be as prescribed and shall not be varied to their disadvantage during their
tenure.��Section 25: Administrative Powers of ChairpersonChairperson
shall have powers of:General superintendence and directions in conduct of
Authority’s affairsPresiding over Authority’s meetingsExercise and discharge
of administrative powers and functions as prescribed���Section 26:
Removal of Chairperson and Members from Office in Certain
CircumstancesProvides for removal of Chairperson and Members in specified
circumstances as prescribed.�Section 27: Restrictions on Chairperson or
Members on Employment After Cessation of OfficeImposes restrictions on
employment of Chairperson or Members after ceasing office to prevent
conflict of interest.�Section 28: Officers and Other Employees of
AuthorityState Government, in consultation with Authority, may appoint
officers and employees as necessary for efficient discharge of Authority’s
functions.��Section 29: Meetings of AuthorityProvides for conduct of
Authority’s meetings and quorum requirements.�Section 30: Vacancies, etc.,
Not to Invalidate Proceedings of AuthorityNo act or proceeding of Authority
shall be invalid merely due to vacancy or defect in constitution of
Authority.�Section 31: Filing of Complaints with the Authority or the
Adjudicating OfficerWho Can File:Any aggrieved person
including:Homebuyers/allotteesAssociations of buyersLegal heirs, tenants,
contractorsReal estate agentsOther stakeholders��Against
Whom:Complaints can be filed against:PromotersAllotteesReal estate
agents�Filing Procedure:Create account on State RERA portalFile complaint
using Form AInclude details:Building, wing, flat, unit numberNames of all
owners/joint ownersTotal consideration valueAmount paid to dateDate of
allotment/bookingDate of agreementDate of possession (if
mentioned)�Timeline for Resolution:RERA Authority required to resolve
complaints within 60 days (extendable in certain cases).�Common
Complaints:Delayed possessionChanges in project plans without
consentHidden costsFalse promises/misleading advertisementsSubstandard
construction quality�Jurisdiction:Authority handles: Refund of investment
amount and interest on refundAdjudicating Officer handles: Compensation
and interest thereon under Sections 12, 14, 18, and 19��Section 32:
Functions of Authority for Promotion of Real Estate SectorAuthority shall
promote growth and development of real estate sector by creating conducive
environment for transactions.�Section 33: Advocacy and Awareness
MeasuresAuthority shall undertake advocacy and awareness campaigns to
educate stakeholders about their rights and obligations.�Section 34:
Functions of AuthorityKey Functions:1. Registration and Regulation:Register
and regulate real estate projects and agents registered under Act��2.
Database Maintenance:Publish and maintain website/records for public
viewing of all registered projects with complete details��3. Protection of
Interests:Protect interests of promoters, buyers, and real estate agents��4.
Development Goals:Promote sustainable and affordable housing�5. Advisory
Role:Render advice to government and ensure compliance with
regulations��6. Call for Information and Investigations:Authority has power
to call for information and conduct investigations��7. Issue Interim
Orders:Power to issue interim orders in appropriate cases��8. Issue
Directions:Authority can issue directions to ensure compliance���9.
Impose Penalties:Power to impose penalty or interest for violations��10.
Rectify Orders:Authority may rectify its own orders�Section 35: Powers of
Authority to Call for Information, Conduct InvestigationsAuthority has powers
similar to civil court to:Summon witnessesRequire production of
documentsReceive evidence on affidavitsConduct site inspectionsIssue
commissions for examination of witnesses��Investigation Powers:If
Authority suspects violation, it can initiate investigation involving:Reviewing
records and accountsSummoning witnessesInspecting properties�Section
36: Power to Issue Interim OrdersAuthority has power to issue interim orders
to prevent immediate harm or maintain status quo pending final
decision.�Section 37: Powers of Authority to Issue DirectionsAuthority may
issue directions to:PromotersReal estate agentsAllotteesAny other
stakeholders to ensure compliance with Act��Application in Refund
Cases:Upon identifying breach of Section 13 (advance payment without
agreement), Authority invokes Section 37 to direct promoter to refund
amount received.�Section 38: Powers of AuthorityAuthority has
comprehensive powers to:Impose penalties for violationsOrder promoters to
pay interest to buyers for delaysTake corrective actions for non-
compliance���Section 39: Rectification of OrdersAuthority may rectify
apparent errors in its orders within specified time.�Section 40: Recovery of
Interest or Penalty or Compensation and Enforcement of OrderRecovery
Procedure:Interest, penalty, or compensation ordered by Authority shall be
recoverable as arrears of land revenue.��Enforcement:Authority’s orders
are enforceable like decrees of civil court, ensuring effective
implementation.�CHAPTER VIII: OFFENCES, PENALTIES AND ADJUDICATION
(SECTIONS 59-72)Section 59: Punishment for Non-Registration Under Section
3Penalty (Section 59(1)):If promoter contravenes Section 3 (conducting
business without registration), liable to penalty up to 10% of estimated cost
of real estate project as determined by Authority.���Imprisonment
(Section 59(2)):If promoter does not comply with orders under sub-section
(1) or continues violation, punishable with:Imprisonment up to 3 years,
ORFine up to further 10% of estimated cost,
ORBoth��Compounding:Offence can be compounded by paying 10% of
estimated project cost (varies by state – some states allow 5% for Authority
order violations and 5% for Tribunal violations).�Section 60: Penalty for
Contravention of Section 4If promoter provides false information or violates
filing and disclosure requirements under Section 4, liable to penalty up to 5%
of estimated project cost.��Section 61: Penalty for Contravention of Other
Provisions of ActIf promoter contravenes any other provisions of Act (other
than Sections 3 or 4), rules, or regulations, liable to penalty up to 5% of
estimated cost of real estate project.��Section 62: Penalty for Non-
Registration and Contravention Under Sections 9 and 10If real estate
agent:Acts without registration under Section 9, ORViolates duties under
Section 10Liable to penalty up to 5% of cost of plot/apartment/building for
which sale or purchase was facilitated.�Section 63: Penalty for Failure to
Comply with Orders of Authority by PromoterIf promoter fails to comply with
or contravenes orders or directions of Authority, liable to penalty for every
day during which default continues, cumulatively extending up to 5% of
estimated project cost.��Section 64: Penalty for Failure to Comply with
Orders of Appellate Tribunal by PromoterIf promoter fails to comply with or
contravenes orders, decisions, or directions of Appellate Tribunal, punishable
with:Imprisonment up to 3 years, ORFine for every day of default,
cumulatively up to 10% of estimated project cost,
ORBoth���Compounding:Can be compounded by paying 10% of estimated
project cost.�Section 65: Penalty for Failure to Comply with Orders of
Authority by Real Estate AgentIf real estate agent fails to comply with or
contravenes orders or directions of Authority, liable to penalty for period of
default, cumulatively up to 5% of estimated cost of property for which
sale/purchase was facilitated.��Section 66: Penalty for Failure to Comply
with Orders of Appellate Tribunal by Real Estate AgentIf real estate agent
fails to comply with or contravenes orders or directions of Appellate Tribunal,
punishable with:Imprisonment up to 1 year, ORFine for every day of default,
cumulatively up to 10% of estimated cost of property,
ORBoth��Compounding:Can be compounded by paying 10% of estimated
cost of property.�Section 67: Penalty for Failure to Comply with Orders of
Authority by AllotteeIf allottee fails to comply with or contravenes orders,
decisions, or directions of Authority, liable to penalty for period of default,
cumulatively up to 5% of plot/apartment/building cost.��Section 68:
Penalty for Failure to Comply with Orders of Appellate Tribunal by AllotteeIf
allottee fails to comply with or contravenes orders or directions of Appellate
Tribunal, punishable with:Imprisonment up to 1 year, ORFine for every day of
default, cumulatively up to 10% of plot/apartment/building cost,
ORBoth��Compounding:Can be compounded by paying 5-10% of estimated
cost depending on state rules.�Section 69: Offences by CompaniesCompany
Liability (Section 69(1)):When offence is committed by company, every
person who was in charge of and responsible for conduct of business at time
of commission shall be deemed guilty and liable to be proceeded
against.��Exception:Person not liable if proves offence was committed
without his knowledge or that he exercised all due diligence to prevent
commission.��Officer Liability (Section 69(2)):Where offence committed
with consent, connivance, or attributable to neglect of any director,
manager, secretary, or other officer of company, such person shall also be
deemed guilty of offence.���Definition:”Company” includes firm,
association of individuals, or body of individuals (whether incorporated or
not).�Section 70: Compounding of OffencesCompounding Allowed:Any
offence punishable with imprisonment may be compounded by court on
payment of sum of money as prescribed.��Maximum Amount:Amount
payable for compounding shall not exceed maximum fine prescribed for the
offence.��Timing:Compounding can be done either:Before prosecution is
instituted, ORAfter prosecution has begun��Effect of Compounding:After
acceptance of compounding amount:No further prosecution for same
offenceDeemed to amount to acquittal under Section 300 of
CrPC�Compliance Requirement:Person who compounds offence must
comply with Authority’s/Tribunal’s orders within period specified by court (not
more than 30 days from date of compounding)�State-wise Variations:Delhi,
Tamil Nadu, Karnataka:Promoter: 10% of estimated project costAgent: 10% of
estimated cost of propertyAllottee: As prescribedMaharashtra,
Haryana:Promoter: 5% (Authority order) + 5% (Tribunal order) = up to
10%Agent: 5% extending to 10%Allottee: 5% extending to
10%Gujarat:Promoter: 5% for both Authority and Tribunal violationsAgent:
5% of estimated cost�Section 71: Power to
AdjudicateAppointment:Appropriate Government shall appoint one or more
judicial officers not below rank of District Judge as Adjudicating Officer(s) for
adjudging compensation under Sections 12, 14, 18, and
19.��Jurisdiction:Adjudicating Officer has exclusive jurisdiction to:Award
compensation for violations of Sections 12, 14, 18, and 19Determine interest
on compensationImpose penalties in prescribed cases���Distinction from
Authority:Authority decides: Refund of investment amount and interest on
refundAdjudicating Officer decides: Compensation and interest
thereon��Section 72: Factors to be Taken into Account by the Adjudicating
OfficerWhile adjudging quantum of compensation, Adjudicating Officer shall
have due regard to:Amount of disproportionate gain or unfair advantage
made due to defaultAmount of loss caused to allottee due to
defaultRepetitive nature of defaultOther relevant factors�Summary Points
for Quick RevisionKey Timelines:Authority to decide on registration: 30
daysShow cause notice before revocation: 30 daysPromoter to rectify
structural defects: 30 daysFormation of allottee association: 3 months (from
majority booking)Allottee to take possession after occupancy certificate: 2
monthsPromoter to execute conveyance deed: 3 months (from occupancy
certificate)Complaint resolution by Authority: 60 days
(extendable)Chairperson/Members tenure: 5 years or age 65, whichever
earlierRegistration extension maximum period: 1 yearKey
Percentages:Advance payment limit without agreement: 10% of costFunds in
escrow account: 70% of collected amountsPenalty for non-registration
(Section 59): Up to 10% of project costPenalty for other violations by
promoter: Up to 5% of project costPenalty for non-compliance with orders:
5% (Authority), 10% (Tribunal)Liability period for structural defects: 5 years
from possessionKey Exemptions:Projects below 500 sq meters or 8
apartmentsProjects with completion certificate before ActRenovation/repair
without new allotmentKey Rights of Allottees:Right to information and
transparencyRight to timely possessionRight to refund with interest (absolute
right per Supreme Court)Right to compensation for delays/defectsRight to
file complaints with AuthorityKey Obligations of Promoters:Mandatory
registration before advertising/selling70% funds in separate escrow
accountQuarterly website updatesCannot accept >10% without agreement
for saleRectify structural defects within 5 years of possessionExecute
conveyance within 3 months of occupancy certificateCannot make changes
without allottee consentKey Authority Powers:Grant/reject/extend/revoke
registrationCall for information and conduct investigationsIssue interim
orders and directionsImpose penalties and interestFast-track dispute
resolutionRecovery as arrears of land revenueThis comprehensive set of
exam notes covers all major provisions of RERA Act 2016 as requested, with
emphasis on practical application and judicial interpretations.�����