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Section 60: Penalty for contravention of section 4

Real Estate (Regulation and Development) Act, 2016 • Official Statutory Text & Practice Guide

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Act 2016
Section 59 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 61

Legal Commentary & Landmark Judgments: Section 60

Section 60 penalizes promoters for providing false information or violating the mandatory project application disclosure requirements under Section 4, imposing fines up to five percent of the estimated project cost.

  • Grounds of Violation: Providing false information in the Section 4 registration application, submitting forged sanction plans, or contravening Section 4 mandates.
  • Five Percent Penalty Ceiling: Promoter liable to a penalty which may extend up to 5% of the estimated cost of the real estate project as determined by the Authority.
  • Strict Disclosure Requirement: Enforces complete truthfulness regarding land title, encumbrances, pending litigation, development timelines, and licensed contractors.
Key Landmark Precedents:
  • Supertech Ltd. v. Emerald Court Owner Resident Welfare Association, (2021) 10 SCC 1: The Supreme Court condemned builders who conceal sanction deviations and misleading disclosures, validating stringent regulatory penalties.
  • Ansal Properties & Infrastructure Ltd. v. RERA, 2021 SCC OnLine Del 3410: Held that misstating encumbrances or suppressing mortgage details in Section 4 declarations directly attracts Section 60 penalties.
Courtroom Practice & Strategic Litigation Guidance:

Compare the developer's registered declaration under Section 4(2)(l) with the local revenue and municipal records; any concealed mortgage or suppressed litigation warrants a petition for a 5% project penalty under Section 60.

Section 59 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 61