Chapter VII OFFENCES AND PENALTIES

Punishment for offences under this Act.-

1. (1) If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend up to ten percent of the estimated cost of the real estate project, as determined by the Authority.
2. (2) If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend upto three years or with fine which may extend to a further ten percent of the estimated cost of the real estate project, or with both.
3. (3) If any promoter knowingly provides false information or contravenes the provisions of sub-sections (2) and (3) of section 3, he shall be liable to a penalty which may extend up to five percent of the estimated cost of the real estate project, as determined by the Authority.
4. (4) If any promoter contravenes any other provisions of this Act, other than that provided under section 3, or the rules or the regulations made thereunder, he shall be liable to a penalty which may extend up to five percent of the estimated cost of the real estate project as determined by the Authority.
5. (5) If any real estate agent willfully fails to comply with or contravenes the provisions of section 8 or section 9, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five percent of the cost of plot or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.
6. (6) If any promoter, willfully fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty of five thousand rupees for every day during which such default continues, which may cumulatively extend up to five percent of the estimated cost of the real estate project as determined by the Authority.
7. (7) If any promoter, willfully fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to ten percent of the estimated cost of the real estate project as determined by the Appellate Tribunal.
8. (8) If any allottee, willfully fails to comply with, or contravenes any of the orders, decisions or directions of the Authority or the Appellate Tribunal or fails to comply with the provisions of the agreement for sale executed by him for purchase of a unit including non payment of any amount or charges in respect thereof, he shall, upon the order of the Authority in that regard, be liable to pay the penalty which may extend up to ten thousand rupees or one percent of the sale price of the property, specified in such agreement whichever is higher.

Offences by companies.-

1. (1) Where an offence under this Act has been committed by a company, every person who, at the time, the offence was committed was in charge of, or was responsible to the company for the conduct of, the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment under this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of, or is attributed to, any neglect on the part of any director, manager, secretary or other officer, he shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.—For the purpose of this section,—
   • (a) "company" means any body corporate and includes a firm or other association of individuals; and
   • (b) "director" in relation to a firm, means a partner in the firm.

Compounding of offences.-Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the offence punishable under section 51 of this Act may, either before or after the institution of the prosecution, be compounded by the Court on such terms and conditions and on payment of such sums as may be prescribed:

Complaints pending before authorities under the Consumer Protection Act Complaints pending before authorities under the Consumer Protection Act.-Any person whose complaint in respect of matters covered in this Act is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, 1986 (Central Act 68 of 1986), on or before the commencement of this Act, he may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending before it and file an application before the Authority under this Act.