BACK TO RERA Act 2016
RERA Act 2016
Section 63
Penalty for Contravention of Provisions by Real Estate Agent
THE STATUTE
Original Text
If any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend to five per cent. of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.
Legal Commentary
Section 63 creates a specific penalty for real estate agents — calibrated differently from the promoter penalties in Sections 59–61. Instead of a one-time percentage of project cost, Section 63 uses a daily accruing penalty (₹10,000/day) capped at 5% of the facilitated transaction value.
**₹10,000 per day:** The daily accrual creates urgency — an agent operating without registration for 30 days faces ₹3 lakh in penalties, and for 180 days the liability reaches ₹18 lakh. The daily structure encourages immediate compliance once the violation is identified.
**5% cap:** The cumulative penalty cannot exceed 5% of the cost of the transaction facilitated — for a ₹1 crore flat, the cap is ₹5 lakh. This prevents the daily accrual from becoming disproportionate for agents who facilitated small transactions.
Questions & Answers
Section 63 imposes ₹10,000 per day of default — from the date the agent begins operating without registration. The cumulative penalty is capped at 5% of the transaction value facilitated. For a 30-day violation involving a ₹1 crore transaction, the penalty would be ₹3 lakh (₹10,000 × 30 days, well within the 5% = ₹5 lakh cap).