Home  /  Real Estate (Regulation and Development) Act, 2016  /  Section 65

Section 65: Penalty for failure to comply with orders of Authority by real estate agent

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

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2016
Section 64 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 66

Legal Commentary & Landmark Judgments: Section 65

Section 65 penalizes real estate agents who fail to comply with orders or directions of the Regulatory Authority, imposing daily fines extending up to five percent of the property transaction value.

  • Agent Non-Compliance: Real estate agent fails to comply with, or contravenes any of the orders or directions of the Authority.
  • Daily Default Penalty: Liable to a penalty for every day during which such default continues.
  • Five Percent Transaction Ceiling: Total penalty may extend up to 5% of the estimated cost of the plot, apartment, or building which has been facilitated.
  • License Suspension: Triggers immediate suspension or cancellation of agent registration under Section 9(4).
Key Landmark Precedents:
  • RERA v. Prime Properties, 2020 SCC OnLine MahaRERA 102: MahaRERA imposed daily fines under Section 65 on a brokerage firm that refused to withdraw misleading marketing brochures despite specific regulatory directives.
  • Kailash Chand v. RERA, 2022 SCC OnLine Raj 1140: Affirmed that brokers defying RERA restitution orders are liable to immediate license cancellation and Section 65 fines.
Courtroom Practice & Strategic Litigation Guidance:

Use Section 65 to enforce compliance against property aggregators who continue to publish delisted or suspended project promotions on their digital platforms.

Section 64 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 66