Section 64: Penalty for Failure by Promoter to Comply with Appellate Tribunal Orders

Section 64 of the Real Estate (Regulation and Development) Act, 2016 (RERA) provides criminal consequences for a promoter who fails to comply with, or contravenes, an order, decision or direction of the Real Estate Appellate Tribunal.

Text of Section 64 of RERA

Meaning and scope of Section 64

The provision applies to a promoter as defined in Section 2(zk), including persons developing or constructing a real estate project for sale within the statutory definition. The Appellate Tribunal is the Real Estate Appellate Tribunal established under Section 43, which hears appeals against decisions, directions or orders of the Authority or an adjudicating officer, as provided by Section 44.

A promoter may incur liability under Section 64 when an applicable order, decision or direction of that Tribunal is disobeyed or contravened. The exact terms of the Tribunal's decision, its operative directions, compliance period and any subsequent stay or modification must be examined before alleging non-compliance.

Punishment under Section 64

• Imprisonment: up to three years.
• Fine: imposed for each day the default continues, with the cumulative fine extending up to 10% of the estimated cost of the real estate project.
• Both: imprisonment and fine may be imposed together.

The 10% figure is the statutory upper limit for the cumulative fine, not an automatic fixed penalty. Section 64 does not itself prescribe a fixed daily rate.

Section 63 compared with Section 64

Section 63 concerns a promoter's failure to comply with orders or directions of the Real Estate Regulatory Authority and provides a continuing penalty that may cumulatively extend to 5% of the estimated project cost. Section 64 concerns disobedience of the Appellate Tribunal and provides for imprisonment, a continuing fine up to 10% of estimated project cost, or both.

Related enforcement provisions

Under Section 70, offences punishable with imprisonment under the Act may be compounded on the terms and conditions prescribed under the applicable rules, subject to the statutory ceiling. Section 80 governs cognizance of offences by a court and requires a written complaint by the Authority or an officer duly authorised by it, or by the appropriate government, as specified in that section. Section 69 addresses offences by companies and the circumstances in which responsible individuals may also be liable.

Practical steps when a promoter does not comply

1. Obtain a certified or authenticated copy of the Appellate Tribunal's operative order and identify each direction and deadline.
2. Check for any stay, appeal, modification or proof of compliance.
3. Place evidence of continued non-compliance before the competent RERA authority or other forum in accordance with applicable rules and procedure.
4. Seek appropriate enforcement action. Criminal prosecution and any recovery proceedings must follow their distinct statutory procedures.

Official law and resources

For the enacted text, amendments and relevant rules, consult the India Code official legislation database and the Ministry of Housing and Urban Affairs. State or Union Territory RERA authorities publish applicable rules, Tribunal procedures and orders. The relevant state rules should be checked before taking action.

This article explains the central statutory framework. The facts of a particular order and applicable rules determine the available enforcement process.