Sections 67 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.
RERA is not one-sided. Sections 67 and 68 put a price on an allottee's non-compliance with orders. If an allottee fails to comply with orders, decisions or directions of the Authority, section 67 provides a penalty for the period during which the default continues, cumulatively up to five per cent of the plot, apartment or building cost. If the order is that of the Appellate Tribunal, section 68 provides imprisonment up to one year, or a fine up to ten per cent, or both. An allottee facing such an order can speak to our legal dispute resolution team.
Section 67: an allottee who fails to comply with, or contravenes, any of the orders, decisions or directions of the Authority is liable to a penalty for the period during which the default continues, which may cumulatively extend up to five per cent of the plot, apartment or building cost, as determined by the Authority. Section 68: an allottee who fails to comply with orders 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 the plot, apartment or building cost, or with both.
Sections 67 and 68 side by side
| Feature | Section 67 | Section 68 |
|---|---|---|
| Who | Allottee | Allottee |
| Trigger | Fails to comply with, or contravenes, any of the orders, decisions or directions of the Authority | Fails to comply with, or contravenes, any of the orders 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 the period during which such default continues" | "Fine for every day during which such default continues" |
| Per-day amount | Not stated | Not stated |
| Cap | Cumulatively up to five per cent of the plot, apartment or building cost, as the case may be | Cumulatively up to ten per cent of the plot, apartment or building cost, as the case may be |
| Connector | Penalty only | "or with both" |
| Determined by | The Authority | Not stated |
Section 67: the Authority's orders
"If any allottee, who fails to comply with, or contravenes any of the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to five per cent. of the plot, apartment or building cost, as the case may be, as determined by the Authority."
What stands out:
- The base is the plot, apartment or building cost, meaning the allottee's own purchase, not the project's estimated cost. The text says "cost", not "estimated cost".
- The accrual is "for the period during which such default continues". The text does not say "every day"; "period" leaves the unit of counting to the Authority.
- No amount per day or per period is stated.
- The section covers "orders, decisions or directions" of the Authority.
When would this arise? The Act contemplates an allottee who is ordered to pay interest on delayed payments (section 19(7) refers to such interest), or to comply with another direction. See our post on the rights and duties of an allottee under section 19. Whether a particular default is covered depends on the order made.
Section 68: the Tribunal's orders
"If any allottee, who fails to comply with, or contravenes any of the orders or directions of the Applellate Tribunal, as the case may be, 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 plot, apartment or building cost, as the case may be, or with both." (The printed text misspells the Tribunal's name and carries the stray words "as the case may be", which we read as having no separate meaning.)
- Imprisonment up to one year, no minimum.
- Fine for every day, cumulatively up to ten per cent of the plot, apartment or building cost; no daily amount.
- "Or with both".
- Section 68 refers to "orders or directions" but not "decisions", unlike section 67.
- The offence is dealt with under section 80: cognizance only on a written complaint of the Authority or an authorised officer, and trial before a Metropolitan Magistrate or a Judicial Magistrate of the first class. See our article on sections 79 and 80. Compounding is possible under section 70; see our article on section 70.
Allottee, agent and promoter compared
| Person | Authority's orders | Tribunal's orders |
|---|---|---|
| Promoter (63, 64) | Daily penalty, up to 5% of estimated cost of project | Up to 3 years, or daily fine up to 10% of estimated cost, or both |
| Agent (65, 66) | Daily penalty, up to 5% of estimated cost of plot, apartment or building facilitated | Up to 1 year, or daily fine up to 10% of that cost, or both |
| Allottee (67, 68) | Penalty for the period, up to 5% of plot, apartment or building cost | Up to 1 year, or daily fine up to 10% of that cost, or both |
See our article on sections 63 and 64 and our article on sections 65 and 66. The allottee's imprisonment term matches the agent's, and is shorter than the promoter's.
Worked example
An allottee, Mr Joshi, bought an apartment for Rs 70 lakh. The Authority orders him to pay Rs 1.5 lakh interest on delayed instalments, and he does not. Under section 67, a penalty may accrue for the period of default, cumulatively up to five per cent of Rs 70 lakh, which is Rs 3.5 lakh. If the Tribunal later upholds the order and he still does not comply, section 68 could allow imprisonment up to one year, a daily fine up to ten per cent (Rs 7 lakh), or both.
Practical points
- Appeal in time. An allottee aggrieved by an Authority order may appeal to the Appellate Tribunal within sixty days under section 44; see our article on section 44. The deposit in section 43(5) is stated for promoters; the Act is silent on any deposit by an allottee.
- Pay what is ordered. An unpaid sum is recoverable as arrears of land revenue under section 40(1).
- Seek a settlement before default grows. The text provides no waiver, but the accrual runs only while the default continues.
Need help with an order against you as an allottee?
An order against a buyer needs prompt attention, because the exposure grows with each day of default. We can read the order, explain the exposure and help you appeal or comply. Reach out via legal dispute resolution.
Key takeaways
- Section 67: penalty for the period of default, cumulatively up to five per cent of the plot, apartment or building cost.
- Section 68: for Tribunal orders, imprisonment up to one year, or a daily fine up to ten per cent, or both.
- The base is the allottee's own plot, apartment or building cost.
- No per-day or per-period rupee figure is stated.
- An unpaid amount is recoverable under section 40; an appeal lies under section 44.
Read next
- Sections 65 and 66: agent not complying with Authority or Tribunal orders
- Section 69: offences by companies
- Rights of Allottee Under RERA: Section 19
- 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.