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Section 61: Penalty for contravention of other provisions of this Act

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

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Act 2016
Section 60 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 62

Legal Commentary & Landmark Judgments: Section 61

Section 61 acts as the omnibus residual penalty clause against promoters, imposing fines up to five percent of the estimated project cost for contravening any provision of the Act, rules, or regulations where no specific penalty is provided.

  • Omnibus Coverage: Applies to any contravention of RERA provisions, State Rules, or Authority Regulations by a promoter for which no separate penalty is prescribed in Chapter VIII.
  • Five Percent Ceiling: Promoter liable to a penalty which may extend up to 5% of the estimated cost of the real estate project.
  • Common Trigger Points: Failure to execute registered agreement under Section 13, non-maintenance of the 70% escrow account under Section 4(2)(l)(D), or failure to transfer title of common areas under Section 17.
Key Landmark Precedents:
  • Pioneer Urban Land and Infrastructure Ltd. v. Govindan Raghavan, (2019) 5 SCC 725: The Supreme Court noted that statutory penalties under Section 61 operate to discipline developers against one-sided contractual clauses and operational abuses.
  • Wadhwa Group Holdings Pvt. Ltd. v. Homi Pheroze Ghandy, 2023 SCC OnLine SC 642: Affirmed that taking booking money over 10% without a registered agreement violates Section 13 and attracts penal sanctions under Section 61.
Courtroom Practice & Strategic Litigation Guidance:

Include a specific prayer for Section 61 statutory penalties in every homebuyer complaint to create financial leverage against recalcitrant builders during settlement negotiations.

Section 60 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 62