BACK TO RERA Act 2016
RERA Act 2016
Section 64
Penalty for Contravention by Allottee
THE STATUTE
Original Text
If any allottee fails to comply with, or contravenes any of the provisions of this Act, or the rules and regulations made thereunder, 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 estimated cost of the plot, apartment or building, as the case may be, as determined by the Authority.
Legal Commentary
Section 64 is the allottee-facing penalty — the Act's statement that buyers too have obligations under RERA, and non-compliance has consequences.
**When Section 64 applies to allottees:**
- Persistently failing to pay instalments after a RERA Authority order directing payment
- Failing to participate in the formation of the allottees' association after an Authority direction
- Not paying maintenance charges after possession, in violation of an Authority order
- Failing to comply with any other Authority order
**₹10,000/day, capped at 5%:** The structure mirrors Section 63 (agent penalty) — daily accrual up to a percentage cap. For a ₹50 lakh flat, the maximum penalty is ₹2.5 lakh.
**Rarely invoked:** In practice, Section 64 is rarely invoked — most builders prefer to exercise their contractual remedies (forfeiture clauses) rather than RERA complaints against defaulting buyers. RERA Authorities are also generally sympathetic to buyer-complainants and may be reluctant to impose penalties against them. However, Section 64 exists and can be used by builders who have obtained RERA Authority orders against non-paying allottees.
Questions & Answers
Yes — a promoter is an 'aggrieved person' under Section 31 and can file complaints against defaulting allottees. If the RERA Authority orders the allottee to pay and the allottee continues to default, Section 64 penalties of ₹10,000/day apply. Additionally, Section 40 recovery as land revenue arrears can be invoked.