Section 68 RERA: Penalty for failure to comply with orders of Appellate Tribunal by allottee

Section 68 of Real Estate (Regulation and Development) Act, 2016: Penalty for failure to comply with orders of Appellate Tribunal 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 or directions of the Appellate Tribunal, as the case may be, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the plot, apartment or building cost, as the case may be, or with both.

Legal Commentary & Landmark Judgments: Section 68

Section 68 prescribes criminal penalties of imprisonment up to one year or fines up to ten percent of apartment cost against allottees who willfully defy orders of the Real Estate Appellate Tribunal.

REAT Order Non-Compliance by Allottee: Allottee fails to comply with, or contravenes any of the orders, decisions, or directions of the Appellate Tribunal.
One-Year Imprisonment: Punishable with imprisonment for a term which may extend up to 1 year.
Ten Percent Fine Alternative: Alternatively or additionally punishable with fine for every day of default up to 10% of apartment cost, or both.
Compounding Option: Offence under Section 68 is compoundable under Section 70 by the court or Authority.

Key Landmark Precedents:

Neelkamal Realtors Suburban Pvt. Ltd. v. Union of India, 2017 SCC OnLine Bom 9302: The Bombay High Court observed that RERA maintains balanced accountability by subjecting both promoters and allottees to criminal sanctions for defying appellate decrees.
Pioneer Urban Land & Infrastructure Ltd. v. Union of India, (2019) 8 SCC 416: Emphasized that speculative investors cannot abuse regulatory forums and are bound by reciprocal statutory liabilities.

Courtroom Practice & Strategic Litigation Guidance:

If a REAT order directs payment of disputed balance dues to the developer upon handover, deposit the amount under protest to avoid triggering Section 68 criminal contempt proceedings.

Section 68: Penalty for failure to comply with orders of Appellate Tribunal by allottee

Section 68 of Real Estate (Regulation and Development) Act, 2016: Penalty for failure to comply with orders of Appellate Tribunal by allottee

Legal Commentary & Landmark Judgments: Section 68