Section 67 RERA: Penalty for failure to comply with orders of Authority by allottee

Section 67 of Real Estate (Regulation and Development) Act, 2016: Penalty for failure to comply with orders of Authority by allottee

Official Bare Act Text

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

If any allottee, who fails to comply with, or contravenes any of the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to five per cent. of the plot, apartment or building cost, as the case may be, as determined by the Authority.

Legal Commentary & Landmark Judgments: Section 67

Section 67 penalizes allottees who fail to comply with orders, decisions, or directions of the Regulatory Authority, imposing daily fines extending up to five percent of the apartment or plot cost.

Allottee Default: Allottee fails to comply with, or contravenes any order, decision, or direction of the Authority issued under RERA.
Daily Default Fine: Liable to a penalty for every day during which default continues.
Five Percent Apartment Ceiling: Total penalty may extend up to 5% of the cost of the plot, apartment, or building as determined by the Authority.
Enforcement Scope: Applicable when allottees refuse to take physical possession within 2 months of OC or fail to pay lawful maintenance charges.

Key Landmark Precedents:

IREO Grace Realtech Pvt. Ltd. v. Abhishek Khurana, (2021) 3 SCC 241: The Supreme Court noted that allottees have reciprocal statutory duties under Section 19 and Section 67 to take possession once a valid Occupancy Certificate is issued.
DLF Southern Homes Pvt. Ltd. v. Allottees, 2020 SCC OnLine Kar 1450: The Karnataka High Court held that allottees who unreasonably obstruct formation of the RWA or refuse possession post-OC can face Section 67 proceedings.

Courtroom Practice & Strategic Litigation Guidance:

Once an Occupancy Certificate is validly granted and the builder offers physical possession conforming to sanctioned plans, allottees must take possession under protest rather than risking Section 67 daily fines.

Section 67: Penalty for failure to comply with orders of Authority by allottee

Section 67 of Real Estate (Regulation and Development) Act, 2016: Penalty for failure to comply with orders of Authority by allottee

Legal Commentary & Landmark Judgments: Section 67