Corrected on 6 November 2026. An earlier version cited Section 72 and a three-year jail term. Neither is correct: the change is to Section 68, and the old term was up to one year. It has been rewritten.
A client who loses at the Appellate Tribunal asks whether ignoring the order could mean jail. Since 7 May 2026, for an allottee, the answer is no. The Jan Vishwas (Amendment of Provisions) Act, 2026 changed Section 68 of the RERA Act, and the Ministry of Housing and Urban Affairs appointed 7 May 2026 as the date, according to SCC Online. We have not read the Gazette text, and one secondary report gives a different date, so check it if the date matters to a dispute.
What Changed
Before: an allottee who failed to comply with Appellate Tribunal orders could face imprisonment up to one year, or a fine for every day of default up to 10% of the plot, apartment or building cost, or both.
Now, as reported: the allottee is liable to a penalty up to 10% of the plot, apartment or building cost. There is no imprisonment.
On a ₹50 lakh flat, the ceiling works out to ₹5 lakh. That is a maximum, set on the facts, and it sits on top of whatever the order itself told the allottee to pay.
What Did Not Change
- Section 64 (promoter, Tribunal orders): imprisonment up to three years, or a daily fine up to 10% of the estimated project cost, or both.
- Section 66 (agent, Tribunal orders): imprisonment up to one year, or a daily fine up to 10% of the estimated cost of the plot, apartment or building, or both.
- Section 59 (promoter, continued non-registration): imprisonment up to three years, or a further fine up to 10% of the project cost, or both.
- Section 67 (allottee, Authority orders): a penalty for the period of default, up to 5% of the plot, apartment or building cost.
So "RERA has been decriminalised" is wrong. Reports describe the RERA change as limited to Section 68. Our penalty sections comparison sets all of them side by side.
What to Say to a Client
Our suggestion: tell an allottee that jail is off the table for this default, and that a substantial penalty is not. Do not present 10% as a fixed amount, and do not suggest that ignoring a Tribunal order is now cheap. For a real dispute, suggest they take legal advice.
If your own templates still mention imprisonment for allottees under Section 68, update them. You can check the arithmetic with the RERA penalty calculator.
For Your Exam Preparation
Older study material may still show the earlier Section 68. If a paper uses old wording, read the question closely and check your exam instructions. Practise the penalty sections with a full-length RERA mock test.
Quick check: after 7 May 2026, does an allottee who ignores a Tribunal order face imprisonment under Section 68? No, a penalty up to 10% of the cost.
Turn this update into timed exam practice.
Read the article, then check whether you can answer the same kind of RERA agent exam questions under RERAExam's 40-minute practice clock.