BACK TO RERA Act 2016
RERA Act 2016
Section 61
Penalty for Contravention of Other Provisions
THE STATUTE
Original Text
If any promoter or allottee or real estate agent, as the case may be, contravenes any other provisions of this Act, other than that provided under section 59 or section 60, or the rules or regulations made thereunder, he shall be liable to a penalty which may extend to five per cent of the estimated cost of the real estate project as determined by the Authority.
Legal Commentary
Section 61 is the residual penalty provision — it covers any RERA violation not specifically addressed by Sections 59 or 60. This includes:
- Failure to update the RERA website quarterly (Section 11)
- Not displaying the RERA Registration Number on advertisements
- Collecting more than 10% before agreement (Section 13)
- Altering plans without consent (Section 14)
- Not executing conveyance deed within 3 months of OC (Section 17)
- Failure to maintain the 70% escrow account (Section 4(2)(l)(D))
- Failure by agents to register (Section 9)
**Applies to allottees and agents too:** Unlike Sections 59 and 60 (which are promoter-specific), Section 61 covers allottees and agents as well. An allottee who fails to pay instalments after an RERA order can face Section 61 penalties. An agent who operates without registration or violates the agent code can be penalised.
**Per-project cost basis:** The 5% cap is on the estimated project cost — for a ₹200 crore project, the maximum per-violation penalty is ₹10 crore. Multiple violations can attract separate Section 61 penalties.
Questions & Answers
Section 61 is the general penalty provision — up to 5% of the estimated project cost for any RERA violation not covered by Section 59 (non-registration) or Section 60 (false information). This covers failures to update the website, not executing conveyance deeds, altering plans without consent, and similar ongoing compliance failures.