Which are the Critical Penalties in RERA?
Constructing, selling, marketing and buying a home involves different stakeholders and each member carries a responsibility on their shoulders. Taking this aspect into consideration, the Real Estate (Regulation and Development) Act i.e., RERA was put into place in 2016.
This revolutionary Act was welcomed with open arms by all as it was created to bring transparency and accountability to Promoters, Agents and Buyers. Every State was permitted to draft their version of the RERA regulations. Since rules without implementation is of no importance, the details of the critical penalties and the consequences of non-compliance are important for each one to know – whether a Promoter, an Agent or a Buyer. The critical penalties, as on September 2021, are enlisted below.
- Non-registration of project with RERA - 10% of the overall cost of the project.
- Incorrect information and data shared to any entity - A penalty of 5% of the overall cost of the project.
- Breaking of RERA laws (State-wise) - 10% of the overall cost of the project and/or 3 years imprisonment.
- Non-registration of project - 5% of the overall cost of the project and/or Rs. 10,000 needs to be paid as penalty.
- Non-compliance of RERA laws - 5% of the overall cost of the project to be paid daily.
- Non-adherence to rules (Appellate Tribunal) - Penalty of 10% of the overall cost of the project and/or 1 year in prison.
- Non-compliance of RERA rules (Specific State and Locality) - Daily penalty of 5% of the overall cost of the project.
- Non-compliance to the rules (Appellate Tribunal) - One time penalty of 10% of the overall cost of the project and/or 1 year in prison. (Depending on severity, both could be imposed).
A house is an investment and it is important that all stakeholders involved in the process work together to ensure a smooth transition. Keep yourself abreast with the rules and responsibilities as a home buyer for your respective State, get empowered and make informed decisions. Since these rules are subject to change and are governed by the authorities, kindly follow the relevant websites and circulars for updated information.
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