Sections 65 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.
Sections 65 and 66 set the consequences for a real estate agent who does not obey orders. Section 65 covers orders or directions of the Authority and provides a penalty for every day of default, cumulatively up to five per cent of the estimated cost of the plot, apartment or building for which the sale or purchase was facilitated. Section 66 covers the Appellate Tribunal and allows imprisonment up to one year, or a daily fine up to ten per cent, or both. If you are an agent facing an order, our legal dispute resolution team can help.
Section 65: an agent 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 plot, apartment or building facilitated, as determined by the Authority. Section 66: an agent who fails to comply with the orders, decisions or directions of the Appellate Tribunal is punishable with imprisonment up to one year, or with fine for every day up to ten per cent of that cost, or with both.
Sections 65 and 66 side by side
| Feature | Section 65 | Section 66 |
|---|---|---|
| Who | Real estate agent | Real estate agent |
| 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 | None | A term which may extend up to one year |
| 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 | Cumulatively up to five per cent of the estimated cost of plot, apartment or building, as the case may be, of the real estate project for which the sale or purchase has been facilitated | Cumulatively up to ten per cent of the estimated cost of plot, apartment or building, as the case may be, of the real estate project for which the sale or purchase has been facilitated |
| Connector | Penalty only | "or with fine ... or with both" |
| Determined by | The Authority | Not stated |
Section 65: the Authority's orders
"If any real estate agent, 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 plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated and as determined by the Authority."
Reading it carefully:
- No daily amount. Section 62 fixed ten thousand rupees a day for breaches of sections 9 and 10; section 65 says only "a penalty for every day" and caps the total. The text does not give the daily figure, so the Authority determines it within the ceiling.
- The base is the facilitated transaction. The five per cent is of the estimated cost of the plot, apartment or building "for which the sale or purchase has been facilitated". Section 62 uses "cost"; section 65 uses "estimated cost". Both words are printed as they are.
- Orders and directions. Section 65 does not use the word "decisions".
Section 66: the Tribunal's orders
"If any real estate agent, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one year 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 plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated, or with both."
- Imprisonment up to one year, compared with three years for a promoter in section 64.
- Fine for every day, up to ten per cent of the estimated cost of what was facilitated; again no daily rupee amount is stated.
- "Or with both": the court may impose imprisonment and fine together.
- Because it is a punishment with imprisonment, a court takes cognizance only on a written complaint by the Authority or its authorised officer, and the trial is before a Metropolitan Magistrate or a Judicial Magistrate of the first class, under section 80; see our article on sections 79 and 80. Section 70 allows such punishment to be compounded; see our article on section 70.
Comparison across the agent penalties
| Section | Default | Imprisonment | Daily amount | Ceiling |
|---|---|---|---|---|
| 62 | Contravenes section 9 or 10 | None | Rs 10,000 | 5% of cost of plot, apartment or buildings facilitated |
| 65 | Authority's orders or directions | None | Not stated | 5% of estimated cost of plot, apartment or building facilitated |
| 66 | Tribunal's orders, decisions or directions | Up to one year | Not stated | 10% of estimated cost of plot, apartment or building facilitated |
See our article on section 62 for the registration and duties penalty.
Worked example
An agent, Ms Sharma, is ordered by the Authority to stop advertising a project that is not registered and to refund a commission, but she continues. The project plot she facilitated cost Rs 60 lakh. Under section 65, the penalty accrues for every day of default and may cumulatively reach five per cent of Rs 60 lakh, which is Rs 3 lakh. If the Tribunal confirms the order and she still does not comply, section 66 allows imprisonment up to one year, a daily fine up to ten per cent (Rs 6 lakh), or both.
Appeal and recovery
An agent can appeal an Authority order to the Appellate Tribunal within sixty days under section 44; the deposit proviso in section 43(5) speaks of promoters only. An unpaid penalty is recoverable under section 40(1). If the agent is a company or firm, section 69 applies. See our article on section 69 and Penalties Under RERA.
Need help with an Authority or Tribunal order?
If an order has been made against you as an agent, quick, accurate compliance or a well-prepared appeal limits the daily exposure. We can review the order, the likely penalty and your options. Reach us at legal dispute resolution.
Key takeaways
- Section 65: daily penalty for ignoring Authority orders, cumulatively up to five per cent of the estimated cost of the plot, apartment or building facilitated.
- Section 66: for Tribunal orders, imprisonment up to one year, or a daily fine up to ten per cent, or both.
- No daily rupee amount is stated in either section.
- The base is the estimated cost of what the agent facilitated, not the whole project.
- The Authority determines the section 65 penalty; section 66 does not say who fixes the fine.
Read next
- Section 62: penalty for real estate agents
- Sections 67 and 68: allottee not complying with Authority or Tribunal orders
- Sections 63 and 64: promoter not complying with Authority or Tribunal orders
- 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.