Section 60 of RERA, 2016: Penalty for Contravention of Section 4

Section 60 of the Real Estate (Regulation and Development) Act, 2016 (RERA) provides a monetary penalty where a promoter supplies false information or violates the requirements of Section 4 when seeking registration of a real estate project.

Text of Section 60: Penalty for contravention of section 4

Meaning and requirements of Section 4 of RERA

Section 4 regulates an application by a promoter for registration of a real estate project with the Real Estate Regulatory Authority. It requires the prescribed form, fee, particulars and supporting records. These include details of the promoter and project, approvals and commencement certificate, sanctioned plans and layout, proposed development works, and other prescribed disclosures.

Section 4(2)(l) also requires a declaration supported by an affidavit, including matters such as the promoter's legal title to the land or valid authenticated documents where applicable, the proposed completion period and deposit of seventy per cent of amounts realised from allottees in a separate account in a scheduled bank for land and construction costs, subject to the Act.

When can Section 60 apply?

Liability may arise if a promoter gives false information in registration documents, declarations or prescribed disclosures, or otherwise fails to comply with Section 4. The Authority determines the penalty, subject to the statutory ceiling of five per cent of the estimated project cost. The maximum is a ceiling, not an automatic penalty in every case.

How is the penalty assessed?

In determining a penalty, the Authority must act under the Act and applicable rules, observing procedural fairness. Section 72 specifies factors to be taken into account when adjudging the quantum of penalty or interest, including disproportionate gain or unfair advantage, loss caused, repetitive nature of default and other relevant factors.

Difference between Sections 59 and 60

Section 59 addresses a promoter's breach of Section 3 (the obligation to register a project where registration is required), with separate consequences for continued violation or non-compliance. Section 60 specifically addresses false information or contravention of Section 4, and prescribes a monetary penalty up to five per cent. The provisions should not be treated as interchangeable.

Practical compliance points

• Ensure registration applications and supporting declarations are accurate and consistent with sanctioned documents.
• Verify project approvals, land-title disclosures, proposed timelines and financial declarations before submission.
• Update project particulars where required by the Act, relevant State or Union territory rules and the applicable RERA portal.
• Respond to notices from the Authority within the prescribed time and retain supporting records.

Frequently asked questions

What is the penalty under Section 60 of RERA?

A penalty of up to five per cent of the estimated real estate project cost, as determined by the Authority.

Does Section 60 impose imprisonment?

No. Section 60 itself prescribes a monetary penalty. Other statutory provisions may prescribe different consequences for separate violations.

Does every incorrect detail result in a five per cent penalty?

No. The provision specifies a maximum, and the Authority determines the penalty on the facts and applicable legal requirements.

Official legal references

• Real Estate (Regulation and Development) Act, 2016 - India Code (official Act)
• RERA information - Ministry of Housing and Urban Affairs
• India Code - central legislation and amendments

Note: State and Union territory rules, notifications and RERA Authority procedures may affect the filing and compliance process. Refer to the applicable official Authority for project-specific requirements.