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Penalties and prosecution

RERA creates project-cost-linked penalties, daily penalties and possible imprisonment for specified non-compliance. Exposure should be quantified early.

Finin2min summary

RERA creates project-cost-linked penalties, daily penalties and possible imprisonment for specified non-compliance. Exposure should be quantified early.

Source review date: 4 July 2026. Read with the official text and the facts of the transaction.

Legal anchors

  • Sections 59–70

How to analyse it

  1. Map breached provision.
  2. Determine relevant project or unit cost base.
  3. Assess continuing default.
  4. Consider compounding where legally available.

Practical illustration

Advertising an unregistered project can attract up to ten per cent of estimated project cost, with further consequences for continued violation.

What can go wrong?

  • Ignoring daily accumulation
  • No director/officer review
  • Treating compounding as automatic

Evidence pack

  • Cost certificate
  • Violation chronology
  • Remediation evidence
  • Responsibility matrix

Decision workflow

  1. Freeze the facts and effective date.
  2. Identify the controlling Act, rule, notification, circular and jurisdictional overlay.
  3. Prepare a calculation or exposure note.
  4. Collect the evidence pack before filing, payment, signing or response.
  5. Record reviewer conclusion and assumptions.

Quick Q&A

Is the result automatic?

No. Map breached provision.

What is the most important control?

Consider compounding where legally available.

What should be escalated?

Ignoring daily accumulation, especially where money, deadlines, enforcement, personal liability or irreversible transaction steps are involved.

Official source trail

Secondary commentary may help interpretation, but it is not the source of law.

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