What is the penalty for a builder who fails to register under RERA?

What the Law Says

The Real Estate (Regulation and Development) Act, 2016 (RERA) makes registration mandatory for all real estate projects above 500 sq m or 8 apartments. Failure attracts strict penalties under Section 59.

Under RERA, no promoter may advertise, market, book, sell, or offer for sale any unit in a real estate project unless the project is registered with the respective State RERA Authority.

Section 59(1) prescribes punishment for contravention of Section 3(1) (mandatory registration). The penalty is a fine which may extend to 10% of the estimated cost of the real estate project.

Section 59(2) adds that if the violation continues, an additional fine of ₹10,000 per day may be imposed for each day the default continues.

Further, Section 59(3) states that the promoter may also be punished with imprisonment for up to three years, or with fine, or with both.

Statutory Text

Whoever contravenes the provisions of sub-section (1) of section 3 shall be punishable with penalty which may extend to ten per cent of the estimated cost of the real estate project.

— Real Estate (Regulation and Development) Act, 2016, s. 59(1) — Penalty for contravention of section 3

Statutory Text

If the contravention continues, an additional penalty which may extend to ten thousand rupees for every day during which such contravention continues, shall be levied.

— Real Estate (Regulation and Development) Act, 2016, s. 59(2) — Penalty for contravention of section 3

Statutory Text

The promoter shall also be punishable with imprisonment for a term which may extend to three years or with fine which may extend to ten per cent of the estimated cost of the real estate project, or with both.

— Real Estate (Regulation and Development) Act, 2016, s. 59(3) — Penalty for contravention of section 3

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