Section 61 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 61 is the catch-all penalty for promoters. Anything a promoter does in breach of the Act, other than sections 3 and 4 which have their own penalties, and anything in breach of the rules or regulations made under it, is covered. The penalty may extend up to five per cent of the estimated cost of the real estate project, as determined by the Authority. For a promoter facing a notice on a missed duty, our legal dispute resolution team can help prepare the reply.
A promoter who contravenes any other provisions of the Act, other than that provided under section 3 or section 4, or the rules or regulations made thereunder, 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. No imprisonment and no per-day amount are stated. Because the section is wide, most promoter defaults, such as those under sections 11 to 18, fall here.
Section 61 at a glance
| Item | What the section says |
|---|---|
| Who | Any promoter |
| Trigger | Contravenes any other provision of the Act (not sections 3 or 4), or the rules or regulations |
| 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, in parts
"If any promoter contravenes any other provisions of this Act, other than that provided under section 3 or section 4, or the rules or regulations made thereunder, 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."
What is carved out. Section 3 (registration of the project) is dealt with in section 59; section 4 (application for registration) is dealt with in section 60. See our post on section 59 and our article on section 60. Everything else is section 61.
What is brought in. Two things: "any other provisions of this Act" and "the rules or regulations made thereunder". The rules are made by each State (appropriate Government) and the regulations by the Authority, so the content of what a promoter must do beyond the Act differs by State; section 61 simply attaches the penalty to breaches of whichever rules and regulations apply.
What is capped. "May extend up to five per cent" of the "estimated cost of the real estate project". The text gives no minimum, no formula and no list of factors; the amount up to the ceiling is for the Authority to determine.
Which promoter duties does this reach?
The Act places many duties on promoters. The ones most commonly in question are the following, each of which has its own article in this series.
| Provision | Subject | Our article |
|---|---|---|
| 11 | Functions and duties of the promoter | Section 11 |
| 12 | False advertisement or prospectus | Section 12 |
| 13 | No deposit or advance without agreement for sale | Section 13 |
| 14 | Sanctioned plans and structural defects | Section 14 |
| 15 | Transfer of project to a third party | Section 15 |
| 16 | Insurance | Section 16 |
| 17 | Transfer of title | Section 17 |
| 18 | Return of amount and compensation | Section 18 |
The table is a guide to where section 61 may bite; whether a particular default is "a contravention" is for the Authority to decide on the facts. Section 61 does not name any of these sections.
Penalty and compensation are different things
Where a promoter's default hurts an allottee, two separate consequences can follow. The first is a penalty under section 61, decided by the Authority and measured against the project. The second is interest or compensation to the allottee, for example under sections 12, 14, 18 and 19, decided by the adjudicating officer under section 71; see our article on section 71. Section 61 does not say that a penalty displaces compensation, and nothing in it says that the two cannot both be ordered. The text is silent, so a promoter should not assume one excludes the other.
Compared with the orders-defiance penalties
Section 61 is about breaching the Act, rules or regulations. Failing to comply with an order of the Authority is a separate default under section 63, with a per-day structure; failing to comply with an order of the Appellate Tribunal is under section 64 and carries imprisonment. See our article on sections 63 and 64.
| Section | Default | Penalty ceiling | Imprisonment |
|---|---|---|---|
| 61 | Contravenes other provisions of the Act, or the rules or regulations | Five per cent of estimated cost of the project | None |
| 63 | Does not comply with Authority's orders or directions | Five per cent of estimated cost, cumulatively, for every day of default | None |
| 64 | Does not comply with Tribunal's orders, decisions or directions | Ten per cent of estimated cost, cumulatively, for every day | Up to three years, or fine, or both |
Illustration. A promoter with a project whose estimated cost is Rs 50 crore fails to keep a duty under the Act and the Authority finds a contravention under section 61. The penalty may extend up to Rs 2.5 crore, and could be less. If the promoter then ignores the Authority's order to remedy the default, section 63 may add a penalty for each day of default.
Process and appeal
The Authority determines the penalty after inquiry. An unpaid penalty is recoverable as arrears of land revenue under section 40(1). A promoter's appeal to the Appellate Tribunal needs a deposit of at least thirty per cent of the penalty, or a higher percentage the Tribunal fixes, under section 43(5). For companies, see section 69.
Need help with a compliance default?
Section 61 can be triggered by almost any lapse in a project, which makes records and timely correction important. We can review your compliance position and prepare a response to any notice. Speak to us about legal dispute resolution.
Key takeaways
- Section 61 is the general penalty for promoters, outside sections 3 and 4.
- It reaches contraventions of the Act and of the rules or regulations.
- The penalty may extend up to five per cent of the estimated cost of the project, as determined by the Authority.
- No imprisonment and no per-day amount are stated.
- Penalty and compensation to the allottee are separate; the text does not make them exclusive.
Read next
- Section 60: penalty for contravention of section 4
- Section 62: penalty for real estate agents
- Penalties Under RERA: Promoter, Agent, Allottee
- RERA Compliance Checklist for Builders
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.