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Section 63: Penalty for failure to comply with orders of Authority by promoter

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

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Section 62 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 64

Legal Commentary & Landmark Judgments: Section 63

Section 63 empowers the Regulatory Authority to penalize promoters who fail to comply with its orders, directions, or decisions under Section 37, levying daily cumulative fines up to five percent of the estimated project cost.

  • Wilful Disobedience: Promoter fails to comply with, or contravenes any of the orders or directions of the Authority issued under Section 37 or other provisions.
  • Continuing Daily Fine: Liable to a penalty for every day during which default continues, calculated cumulatively by the Authority.
  • Five Percent Ceiling: Total penalty may extend up to 5% of the estimated cost of the real estate project as determined by the Authority.
  • Prerequisite for Criminal Prosecution: Persistent defiance under Section 63 forms the factual foundation for initiating criminal prosecution and imprisonment proceedings under Section 64.
Key Landmark Precedents:
  • Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., (2021) 19 SCC 347: The Supreme Court underscored that Section 63 provides the coercive machinery necessary to enforce RERA orders against defiant corporate developers.
  • Jaypee Infratech Ltd. Allottees Association v. RERA, 2021 SCC OnLine All 450: The Allahabad High Court affirmed the imposition of daily penalties under Section 63 where the promoter failed to refund allottee capital within the 45-day window ordered by RERA.
Courtroom Practice & Strategic Litigation Guidance:

If a developer fails to comply with a RERA refund or completion direction within the specified timeline, immediately file a Non-Compliance Application under Section 63 praying for maximum daily penalties.

Section 62 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 64