Sections 63 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.
These two sections bite after a promoter has already lost. Section 63 deals with a promoter who does not comply with orders or directions of the Authority and sets a penalty for every day of default, which may cumulatively reach five per cent of the estimated cost of the project. Section 64 deals with a promoter who ignores orders, decisions or directions of the Appellate Tribunal and allows imprisonment up to three years or a fine for every day, up to ten per cent, or both. If an order is already against you, our legal dispute resolution team can help you plan compliance or a challenge.
Section 63: a promoter who fails to comply with, or contravenes, any of the orders or directions of the Authority is liable to a penalty for every day during which the default continues, which may cumulatively extend up to five per cent of the estimated cost of the real estate project, as determined by the Authority. Section 64: a promoter who fails to comply with orders, decisions or directions of the Appellate Tribunal is punishable with imprisonment up to three years, or with fine for every day during which the default continues, which may cumulatively extend up to ten per cent of the estimated cost of the project, or with both.
Sections 63 and 64 side by side
| Feature | Section 63 | Section 64 |
|---|---|---|
| Who | Promoter | Promoter |
| Trigger | Fails to comply with, or contravenes, any of the orders or directions of the Authority | Fails to comply with, or contravenes, any of the orders, decisions or directions of the Appellate Tribunal |
| Nature | Penalty | Punishment: imprisonment or fine, or both |
| Imprisonment | None | A term which may extend up to three years |
| Per-day element | Penalty for every day during which the default continues | Fine for every day during which the default continues |
| Per-day amount | Not stated | Not stated |
| Cap | May cumulatively extend up to five per cent of the estimated cost of the real estate project | May cumulatively extend up to ten per cent of the estimated cost of the real estate project |
| Who determines | The Authority ("as determined by the Authority") | Not stated in the section |
| Connector | Penalty only | "or with fine ... or with both" |
Section 63: the Authority's orders
"If any promoter, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of the real estate project as determined by the Authority."
Points from the text:
- Orders and directions. The section covers "any of the orders or directions of the Authority". Section 63 does not use the word "decisions", unlike section 64.
- A daily structure with no amount. Unlike section 62, which fixes ten thousand rupees a day for agents, section 63 states no daily amount. It says the penalty accrues "for every day" and the total "may cumulatively extend up to five per cent". The daily rate is therefore for the Authority to determine; the text gives no figure. That is a gap in the text, and we flag it.
- The cap. Five per cent of the "estimated cost of the real estate project". It is a ceiling on the cumulative total.
- The sentence is imperfect. "If any promoter, who fails to comply with..." has no main verb for the condition. The meaning is clear from the rest, but it is a drafting flaw.
Section 64: the Appellate Tribunal's orders
"If any promoter, who fails to comply with, or contravenes any of the orders, decisions or directions of the Applellate Trinbunal, he shall be punishable with imprisonment for a term which may extend up to three years or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of the real estate project, or with both." (The printed text misspells the Tribunal's name.)
The punishment has three possible outcomes:
- imprisonment up to three years; or
- fine for every day of default, cumulatively up to ten per cent of the estimated cost; or
- both.
Points from the text:
- It is a criminal punishment, not just a penalty. The words are "punishable with imprisonment". Cognizance and trial are governed by section 80; see our article on sections 79 and 80.
- The imprisonment is a term which may extend up to three years, so no minimum is set.
- The fine for each day of default, again, has no daily amount stated.
- Section 64 does not say who determines the fine. Section 63 says "as determined by the Authority"; section 64 does not repeat it.
- The offence can be compounded; see our article on section 70.
- If the promoter is a company, section 69 may extend liability to those in charge; see our article on section 69.
How the two fit with the appeal route
A promoter who disagrees with an Authority order can appeal to the Appellate Tribunal under section 44 within sixty days, subject to the deposit in section 43(5). That order of the Tribunal, once made, binds the promoter, and section 64 attaches to non-compliance with it. Orders for money can also be recovered as arrears of land revenue under section 40(1). See our article on section 40 and our article on section 44.
Neither section says that the penalty or punishment is suspended while an appeal is pending. The text is silent on that point.
A worked example
The Authority directs Sunrise Realty to hand over possession and pay interest to allottees within thirty days. Sunrise ignores the order. Under section 63, the Authority can impose a penalty for every day of default, and the total may reach five per cent of the project's estimated cost (Rs 5 crore on a Rs 100 crore project). If Sunrise appeals and the Tribunal affirms the order, and Sunrise then still ignores it, section 64 may apply: imprisonment up to three years, or a daily fine up to ten per cent (Rs 10 crore on the same project), or both.
Related provisions for agents and allottees
The same structure appears for agents in sections 65 and 66 and for allottees in sections 67 and 68. See our article on sections 65 and 66. For an overview see Penalties Under RERA.
Need help with an order you cannot comply with?
If an order is against you, the options are compliance, a timely appeal with the deposit, or a negotiated path through the Authority. Each has different exposure under sections 63 and 64. Speak to us about legal dispute resolution before the daily count grows.
Key takeaways
- Section 63: ignoring Authority orders brings a daily penalty, cumulatively up to five per cent of the estimated project cost.
- Section 64: ignoring Tribunal orders is punishable with up to three years' imprisonment, or a daily fine up to ten per cent, or both.
- Neither section states a daily rupee amount.
- Section 63 says the Authority determines the penalty; section 64 is silent on who fixes the fine.
- Neither section says whether an appeal suspends the penalty.
Read next
- Sections 65 and 66: agent not complying with Authority or Tribunal orders
- Section 69: offences by companies
- Section 61: penalty for contravention of other provisions
- 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.