Section 68 of RERA 2016: Penalty for Failure by Allottee to Comply with Appellate Tribunal Orders

Section 68 of the Real Estate (Regulation and Development) Act, 2016 (RERA) provides consequences where an allottee fails to comply with, or contravenes, an order or direction of the Real Estate Appellate Tribunal. The provision was amended with effect from 7 May 2026 by the Jan Vishwas (Amendment of Provisions) Act, 2026.

Current law: Non-compliance by an allottee attracts a monetary penalty of up to 10% of the cost of the plot, apartment or building, as applicable. Section 68 no longer prescribes imprisonment for this default.

Current text of Section 68

Section 68, as substituted in 2026, provides:

Penalty for failure to comply with orders of Appellate Tribunal by allottee.assert page.isascii()#8212;If any allottee, who fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall be liable to penalty, which may extend up to ten per cent. of the plot, apartment or building cost, as the case may be.

Meaning and application

An allottee, as defined under Section 2(d), generally includes a person to whom a plot, apartment or building has been allotted, sold or otherwise transferred by a promoter, and a subsequent acquirer; a person to whom property is given on rent is excluded from that definition. The Appellate Tribunal is the tribunal established under Section 43 to hear specified appeals under RERA.

Section 68 concerns the failure to obey an order or direction of that Appellate Tribunal, rather than an original order of the Real Estate Regulatory Authority. Non-compliance with an order of the Authority by an allottee is dealt with separately under Section 67.

Maximum penalty under Section 68

The ceiling is 10% of the cost of the relevant plot, apartment or building. For example, if that cost is Rs. 50 lakh, the statutory maximum is Rs. 5 lakh. The provision sets an upper limit; it does not make the maximum amount automatic in every case.

What changed on 7 May 2026?

Before the 2026 substitution, Section 68 provided for imprisonment up to one year, or a daily fine during continuing default up to an aggregate of 10% of the property cost, or both. The substituted section removes imprisonment and the former daily-fine wording, replacing them with a monetary penalty capped at 10% of property cost. The earlier wording should not be treated as the current statutory position.

Related RERA provisions

Section 19: rights and duties of allottees.
Section 43: establishment of the Real Estate Appellate Tribunal.
Section 44: appeals to the Appellate Tribunal.
Section 67: penalty for an allottee's non-compliance with orders of the Authority, capped at 5% of property cost.
Section 68: penalty for non-compliance with Appellate Tribunal orders, capped at 10% of property cost.

Official legal source

For the consolidated Act and amendment notes, consult the official India Code text of RERA 2016 and the India Code legislation record. The consolidated text records the substitution of Section 68 by Act 8 of 2026, effective 7 May 2026.

Updated: 4 October 2026. The applicable rules and orders should also be checked in individual proceedings.