Diploma In Real Estate Compliance For Builders Module Iv: Penalties And Orders

The real estate sector operates within a structured regulatory framework designed to ensure transparency, accountability, and protection of homebuyers. Under the Real Estate (Regulation and Development) Act, 2016 (RERA), developers must comply with prescribed legal norms, failing which they may face penalties, orders, and legal consequences. Module IV of the Diploma in Real Estate Compliance for Builders focuses on understanding these critical aspects, enabling professionals to navigate the regulatory environment with confidence.

Understanding RERA Penalties and Legal Orders

A builder’s obligations under RERA extend from project registration to timely completion and delivery. When these obligations are violated, authorities may issue directions, penalties, or initiate enforcement action. This module provides a complete overview of the mechanisms that ensure compliance.

Orders and Executions

RERA authorities across states possess quasi-judicial powers, enabling them to issue orders after hearing grievances from homebuyers or project stakeholders. These orders may include directives such as:

• Refund of money to homebuyers with interest
• Payment of compensation due to delays or deficiencies
• Completion of stalled projects under supervision
• Rectification of structural or service defects

Execution of orders is handled by the authority or through designated courts. If a developer does not comply voluntarily, authorities may initiate:

• Attachment of bank accounts
• Attachment of project or personal assets
• Recovery certificates treated as arrears of land revenue

This ensures that homebuyers receive timely justice and that the regulatory ecosystem remains balanced.

Penalties Under Sections 60 to 65

Sections 60 to 65 of RERA outline a range of penalties for non-compliance. The module explains these in detail, including:

• Section 60: Penalty for providing false or misleading information during project registration.
• Section 61: Penalty for not complying with orders of the authority.
• Section 62: Penalty for violating provisions applicable to real estate agents.
• Section 63: Penalty for failure to comply with directions of the authority.
• Section 64: Penalty for failure to comply with directions of the Appellate Tribunal.
• Section 65: Penalty for contravening Appellate Tribunal orders, which may include imprisonment.

These penalties are designed to ensure that developers follow best practices and maintain transparency throughout the project life cycle.

RERA Tribunal Rules and Applications

When a party is dissatisfied with an order issued by the RERA Authority, they may approach the Appellate Tribunal. This module covers:

• Structure and powers of the RERA Appellate Tribunal
• Timelines for filing appeals
• Required documentation and affidavits
• Hearing procedures and interim reliefs

The Tribunal acts as the higher authority to ensure checks and balances in the judicial process and offers a platform for adjudication of complex real estate disputes.

Consent Terms and Procedural Flow

Many disputes are resolved through mutually agreed terms between the developer and the homebuyer. This section explains:

• How to draft consent terms
• Submitting consent terms before RERA or Tribunal
• Ensuring enforceability of settlement agreements
• Compliance monitoring after settlement

Understanding the flow of cases—from complaint filing to final execution—helps developers adopt a proactive compliance approach, reducing litigation risks.

Module IV equips builders and compliance professionals with essential knowledge on penalties, enforcement procedures, and legal orders under RERA. With this comprehensive understanding, participants can safeguard their projects, maintain regulatory compliance, and handle legal challenges effectively. The module empowers builders to operate with greater diligence, ensuring smoother project management and enhanced trust among homebuyers.