Most homebuyers believe that the Real Estate (Regulation and Development) Act, 2016 (RERA) is a law meant only to punish errant developers. While that is largely true, very few people know that RERA also prescribes penalties—including imprisonment—for homebuyers (allottees) who fail to comply with binding orders.
A recent focus on enforcement under MahaRERA and the MahaRERA Appellate Tribunal has brought this lesser-known provision into the spotlight.
Here’s a simple breakdown of who faces what punishment under RERA—and when.
RERA Creates Two Authorities, Two Levels of Consequences
Under the RERA framework, disputes are decided at two levels:
- The RERA Authority (MahaRERA)
- The RERA Appellate Tribunal
The punishment differs depending on:
- Whether the defaulter is a developer (promoter) or a homebuyer (allottee)
- Whether the order violated is of the Authority or the Tribunal
When a Developer Disobeys a MahaRERA Authority Order
Applicable Law: Section 63, RERA Act
If a promoter fails to comply with an order passed by MahaRERA:
- Penalty for every day of default
- Maximum penalty up to 5% of the estimated cost of the project
- ❌ No imprisonment at this stage
👉 At the Authority level, punishment is purely monetary, even for builders.
When a Homebuyer Disobeys a MahaRERA Authority Order
Applicable Law: Section 67, RERA Act
If an allottee fails to comply with an order of MahaRERA:
- Penalty for every day of default
- Capped at 5% of the cost of the plot or apartment
- ❌ No jail provision
👉 At the Authority stage, homebuyers and developers are treated similarly—only fines apply.
When a Developer Disobeys a MahaRERA Appellate Tribunal Order
Applicable Law: Section 64, RERA Act
This is where the law becomes extremely strict.
If a promoter fails to comply with an order of the MahaRERA Appellate Tribunal:
- Daily penalty
- Maximum penalty up to 10% of the project cost
- Imprisonment up to 3 YEARS
- Or both fine and imprisonment
👉 This reflects RERA’s intent to strongly deter non-compliant builders.
When a Homebuyer Disobeys a MahaRERA Appellate Tribunal Order
Applicable Law: Section 68, RERA Act
If an allottee fails to comply with a Tribunal order:
- Daily penalty
- Maximum penalty up to 10% of the cost of the flat or plot
- Imprisonment up to 1 YEAR
- Or both
⚠️ This is the provision most homebuyers are unaware of.
RERA treats Tribunal orders as final and binding—and wilful disobedience can attract criminal consequences even for buyers.
Why Does RERA Allow Jail for Homebuyers at All?
Legal experts point out that:
- Tribunal orders are passed after full hearings
- The law must prevent abuse of process
- Compliance is essential to maintain credibility of the system
However, RERA still remains a consumer-centric law, evident from:
- Harsher punishment for developers (3 years vs 1 year)
- Jail being a last-resort measure, usually after repeated defiance
Important Practical Reality
While imprisonment is legally provided:
- Most enforcement actions begin with monetary recovery
- Authorities usually attempt:
- Attachment of bank accounts
- Recovery as arrears of land revenue
- Jail is invoked only in cases of deliberate and continuous non-compliance
What Homebuyers Should Take Away
- RERA is a powerful remedy—but orders must be obeyed
- Tribunal directions are not optional
- Filing cases casually or ignoring final orders can backfire
Bottom Line
RERA protects homebuyers—but it also demands accountability from them.
Disobeying a MahaRERA Tribunal order can carry real legal consequences, including jail.
Also Read: Can Developers Sell Parking to Homebuyers?
