Centre Proposes Penalty Instead Of 1 Year Jail For Allottees Violating RERA Appellate Tribunal Orders

The Jan Vishwas (Amendment of Provisions) Bill, 2026, has been introduced in the Lok Sabha as part of a broader legislative push to decriminalise offences and rationalise penalties across a range of laws.

One of the changes relates to the Real Estate (Regulation and Development) Act, 2016. Section 68 of the Act currently allows for imprisonment of up to one year where an allottee (homebuyer) fails to comply with orders of the Real Estate Appellate Tribunal. It also provides for a continuing fine, which may cumulatively extend up to 10 percent of the cost of the plot, apartment, or building.

The Bill now proposes to amend this provision. In place of imprisonment, an allottee who fails to comply with, or contravenes orders or directions of the Appellate Tribunal would be liable to a monetary penalty, which may extend up to ten percent of the cost of the plot, apartment, or building, as the case may be.

"Penalty for failure to comply with orders of Appellate Tribunal by allottee.—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"

The proposed change indicates a move from criminal sanctions to financial penalties in line with the broader objective of the Bill to decriminalise regulatory offences.

The Bill further provides that “It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for amendments relating to different enactments mentioned in the Schedule.”

The Real Estate (Regulation and Development) Act, 2016, was enacted to regulate and promote the real estate sector and to ensure transparency while protecting consumer interests through a structured adjudicatory mechanism.

Click here to read the Real Estate (Regulation and Development) Act, 2016