Section 60 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 60 is one sentence long, but it carries real money. A promoter who provides false information or contravenes section 4, the section on applying for registration of a real estate project, is liable to a penalty that may extend up to five per cent of the estimated cost of the real estate project, as determined by the Authority. If you have a registration application to file or an Authority notice to answer, our legal dispute resolution team can help you respond.
Any promoter who provides false information or contravenes the provisions of section 4 is liable to a penalty which may extend up to five per cent of the estimated cost of the real estate project, as determined by the Authority. It is a penalty only: section 60 states no imprisonment and no per-day amount. The word is "may extend up to", so five per cent is the ceiling, not a fixed charge.
Section 60 at a glance
| Item | What the section says |
|---|---|
| Who | Any promoter |
| Trigger | Provides false information, or contravenes the provisions of section 4 |
| Penalty | May extend up to five per cent of the estimated cost of the real estate project |
| Who determines | The Authority |
| Imprisonment | None stated |
| Per-day element | None stated |
The text, split into its parts
"If any promoter provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project, as determined by the Authority."
Two triggers. The first is "provides false information". The second is "contravenes the provisions of section 4". They are joined by "or", so either is enough. Section 4 is the section on the application for registration of a real estate project; see our article on section 4. The words "provides false information" are not limited in the text to information given under section 4, but the section's heading, "Penalty for contravention of section 4", points to the application. We do not read more into the words than they say; where false information is given elsewhere under the Act, check section 61 and the other penalty sections.
What is capped. The penalty "may extend up to five per cent. of the estimated cost of the real estate project". "Estimated cost" is a defined term in section 2; see our article on the definitions. The text sets no minimum and no formula. The amount between nil and five per cent is for the Authority to determine after hearing, and section 60 does not list factors to guide it. (The factors in section 72 are for compensation decided by the adjudicating officer, not for this penalty.)
Who decides. "As determined by the Authority." The adjudicating officer is not named in section 60.
How it compares with the neighbouring penalties
| Section | Who | Trigger | Penalty | Imprisonment |
|---|---|---|---|---|
| 59(1) | Promoter | Contravenes section 3 | Up to ten per cent of the estimated cost of the project | See 59(2) |
| 60 | Promoter | False information or contravenes section 4 | Up to five per cent of the estimated cost of the project | None |
| 61 | Promoter | Contravenes any other provision, or the rules or regulations | Up to five per cent of the estimated cost of the project | None |
Section 59 is covered in our existing post on penalty for non-registration under section 59, and section 61 in our article on section 61. For an overview of all penalties see Penalties Under RERA.
Practical reading
- Accuracy at the time of application matters. The cost of a mistake is measured against the whole project, not against the part that was wrong. A small false statement could still attract a penalty measured in percentage of project cost, though the Authority decides how much.
- No fixed tariff. Because the text says "may extend up to", an inquiry will generally turn on the nature and seriousness of the default. The Act does not say so in terms; it only sets the ceiling.
- One section, one penalty. Section 60 does not say whether a promoter who both gives false information and contravenes another part of section 4 faces one penalty or two. The text is silent.
- No time limit. The section does not state a limitation period for the Authority to act.
Illustration. Suppose the estimated cost of a project is Rs 100 crore. The most the Authority could impose under section 60 is Rs 5 crore, five per cent of that figure. It could impose less. If the estimated cost were Rs 20 crore, the ceiling would be Rs 1 crore.
What happens if the penalty is not paid
An order under section 60 is an order of the Authority. If the amount is not paid, it is recoverable as arrears of land revenue under section 40(1), in the prescribed manner; see our article on section 40. A promoter aggrieved by the order may appeal to the Appellate Tribunal within sixty days under section 44, and must first deposit at least thirty per cent of the penalty, or a higher percentage fixed by the Tribunal, under section 43(5). Where the promoter is a company, the persons in charge can be reached under section 69; see our article on section 69.
Need help with a notice under section 60?
If the Authority has issued a notice about the information you gave, the response and the record matter. We can review the application, your replies and the notice, and prepare your submission. Contact us at legal dispute resolution with your papers ready.
Key takeaways
- A promoter who gives false information or contravenes section 4 faces a penalty.
- The penalty may extend up to five per cent of the estimated cost of the real estate project, as determined by the Authority.
- No imprisonment and no per-day amount are stated in section 60.
- It is a ceiling; no minimum is given.
- An unpaid penalty is recoverable under section 40, and an appeal needs the thirty per cent deposit under section 43(5).
Read next
- Section 59: penalty for non-registration
- Section 61: penalty for contravention of other provisions
- Section 4: application for registration of a real estate project
- Penalties Under RERA: Promoter, Agent, Allottee
Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.