Section 64 RERA: Penalty for failure to comply with orders of Appellate Tribunal by promoter

Section 64 of Real Estate (Regulation and Development) Act, 2016: Penalty for failure to comply with orders of Appellate Tribunal by promoter

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

If any promoter, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to three years or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of the real estate project, or with both.

Legal Commentary & Landmark Judgments: Section 64

Section 64 prescribes criminal penalties of imprisonment up to three years or fines up to ten percent of project cost against promoters who fail to comply with orders of the Real Estate Appellate Tribunal.

REAT Order Non-Compliance: Promoter fails to comply with, or contravenes any of the orders, decisions, or directions of the Appellate Tribunal.
Three-Year Imprisonment: Punishable with imprisonment for a term which may extend up to 3 years.
Ten Percent Fine Alternative: Alternatively or additionally punishable with fine for every day of default extending up to 10% of the estimated cost of the project.
Prosecution Mechanism: Criminal trial initiated before the Magistrate Court upon formal written complaint filed by the Authority or designated officer under Section 80.

Key Landmark Precedents:

Neelkamal Realtors Suburban Pvt. Ltd. v. Union of India, 2017 SCC OnLine Bom 9302: The Bombay High Court held that Section 64 criminal sanctions are constitutionally valid and necessary to deter promoters from treating appellate decrees with contempt.
State of U.P. v. Ansal Housing Ltd., 2022 SCC OnLine All 112: Affirmed that failure to pay sums awarded by REAT warrants criminal cognizance and non-bailable warrants under Section 64.

Courtroom Practice & Strategic Litigation Guidance:

When a promoter fails to honor a REAT decree, file an application before the Appellate Tribunal under Section 57/64 seeking transmission of the matter to the Magistrate for initiating criminal prosecution.

Section 64: Penalty for failure to comply with orders of Appellate Tribunal by promoter

Section 64 of Real Estate (Regulation and Development) Act, 2016: Penalty for failure to comply with orders of Appellate Tribunal by promoter

Legal Commentary & Landmark Judgments: Section 64