Fines and Penalties in RERA

Fines and Penalties in RERA

RERA is very strict when it comes to not abiding by the regulation laid by them with levying harsh fines and penalties for the regulation offenders. Non complying can lead to jail along with heavy fines.

Fines and Penalties laid by the RERA Act are-

  • Any default in following the regulations laid down by the RERA authority of the state or violation of terms and conditions by a competent authority would lead to cancellation of registration of the project, builder, promoter or agent
  • In case of failing to register with RERA would lead to fine of 10 percent of the total project cost or an imprisonment of up to three years, or even both.
  • RERA levies 5 percent penalties in cases of providing false information to the RERA authorities. If case of failure to comply with the orders of the Appellate Tribunal penalty can increase up to 10 percent or one-year imprisonment or both.
  • Builder, promoter is responsible for all structural defects up to 5 years from the date of possession.
    • In case of delayed payment by Buyer: 
    • Buyer is liable to a monthly interest as reimbursement to the builder. But builder holds the right and can terminate the contract of the property as well as deduct the initial booking amount and interest from the total refund. 
    • In case of delayed possession:
    • If buyer wishes to withdraw their investment – Builder is liable to refund all the amount collected so far along with the interest applicable.
    • But if homebuyer wants to stay invested: Promoter is still liable to pay interest every month of delay as reimbursement.

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