What Changed on May 7, 2026: The Jan Vishwas Amendment at a Glance

The Jan Vishwas (Public Trust) Amendment to RERA came into force on May 7, 2026, and it fundamentally changed how non-compliance penalties are structured for allottees. Before this amendment, Section 72 of RERA allowed for imprisonment terms up to three years for allottees who failed to comply with tribunal or regulator orders. That provision has been removed entirely.

The amendment introduces a single, capped penalty structure: allottees now face a maximum monetary penalty of 10% of the property's cost if they fail to comply with tribunal orders. This applies only to monetary obligations, not structural or performance violations. The shift reflects a policy decision to reduce criminal liability in real estate disputes and move enforcement toward financial remedies.

For agents, this is a material change to how you advise clients about their obligations and the consequences of non-compliance. Your client conversations, advisory notes, and agreement templates will need adjustment to reflect this new reality.

Removal of Imprisonment: What This Means for Your Client Conversations

Before May 7, 2026, if a client refused to pay outstanding dues or failed to comply with a tribunal order, they faced the prospect of jail time under Section 72. This was a serious deterrent that shaped how agents framed obligations to buyers.

Now, imprisonment is no longer a threat. The maximum consequence is a financial penalty capped at 10% of the property cost. This doesn't mean non-compliance is costless, but it does mean your advisory to clients should shift in tone and emphasis. When a client asks what happens if they don't pay or don't comply with a tribunal order, you can now confidently say the penalty is monetary only, with a clear ceiling.

Your client agreements should explicitly state this change. If your templates still reference imprisonment or criminal liability, update them immediately. A simple clause like 'Non-compliance with tribunal orders is subject to a monetary penalty not exceeding 10% of the property cost' removes ambiguity and demonstrates professional awareness of current law.

The 10% Penalty Cap: Calculating and Communicating the Financial Impact

The new 10% cap applies to the property's cost. If a client is buying a flat for Rs. 50 lakhs and fails to comply with a tribunal order requiring payment, the maximum penalty they face is Rs. 5 lakhs. This creates a predictable, finite downside risk.

In your client meetings, you should quantify this impact explicitly. Say: 'If we end up in a dispute and the tribunal orders you to pay Rs. 2 lakhs in dues and you don't comply, the maximum additional penalty would be Rs. 5 lakhs (10% of your property cost).' This specificity helps clients understand their exposure and often motivates timely compliance.

When advising clients on payment schedules or tribunal orders, reference the penalty cap as a reason for compliance. The financial consequence is now bounded and knowable, which actually makes it easier for agents to justify urgent action to reluctant clients. Document your advisory in writing, especially when advising on tribunal compliance, to protect yourself from later claims of inadequate guidance.

How This Amendment Changes Agent Liability and Compliance Obligations

The amendment reduces your professional liability in specific ways. Previously, if you advised a client on payment terms without emphasizing the imprisonment risk, you could be blamed if the client faced criminal charges. That risk category no longer exists.

However, your duty to advise clients accurately on monetary penalties and payment obligations remains unchanged. You must now ensure clients understand the 10% penalty structure and the importance of complying with tribunal orders within stipulated timelines. Your advisory should reference the specific amendment and the May 7, 2026 effective date if the client asks about consequences.

If your firm advises clients on tribunal orders or compliance, add a compliance checklist to your process. Document the date of the tribunal order, the compliance deadline, the penalty amount (if monetary), and the maximum exposure under the 10% cap. This creates a defensible record of your diligence and protects you if a client later claims ignorance of their obligations.

Practical Steps: Updating Your Client Agreements and Advisory Process

Start by reviewing your buyer representation agreements and advisory templates. Any clause mentioning imprisonment, criminal liability, or open-ended penalties should be revised to reference the 10% cap under the Jan Vishwas Amendment.

Second, create a tribunal order response template. When a client receives a tribunal order requiring payment or other compliance, your response should include: the order date, the compliance deadline, the amount owed (if any), the maximum penalty under the 10% cap, and the deadline for compliance. Make this a standard client deliverable so clients cannot claim they didn't understand their exposure.

Third, train your team on how to explain the amendment in plain language. Agents should be able to say: 'Under the new Jan Vishwas Amendment, if you don't comply with a tribunal order, the penalty is limited to 10% of what you paid for the property. That's the maximum. But you should still comply on time.' This clarity builds trust and demonstrates regulatory competence to clients.

Risk Reduction for Agents and Buyers: A Mutual Benefit

The amendment benefits both agents and buyers. For buyers, imprisonment is no longer a possibility, which reduces fear and makes the dispute resolution process less threatening. This can actually encourage faster settlement, since clients know their downside is financial rather than personal freedom.

For agents, the removal of imprisonment means you're no longer advising clients about criminal exposure. Your advisory scope narrows to clear financial consequences, which are easier to quantify and communicate. Use the RERA penalty calculator to show clients exactly what 10% of their property cost equals, so the risk becomes concrete rather than abstract.

This reduced complexity also reduces your liability. Courts and regulators now expect agents to advise on the 10% cap as the maximum exposure. If you've documented this in writing, you've met the standard of care. The amendment actually strengthens your defensive position in disputes with clients over non-compliance.

Connecting to Your MahaRERA Exam Preparation

The Jan Vishwas Amendment is likely to appear on your MahaRERA certification exam in questions about Section 72, penalty structures, and client advisory duties. Expect questions like: 'What is the maximum penalty for non-compliance with a tribunal order under the current Jan Vishwas Amendment?' or 'True or False: Imprisonment is a possible penalty for allottees under RERA after May 7, 2026?'

As you prepare, focus on the distinction between pre-amendment and post-amendment law. Know the specific date (May 7, 2026), the removal of imprisonment, and the 10% cap. Practice questions on topic-wise practice tests that cover penalties and compliance. When reviewing case scenarios, apply the 10% cap to calculate exposure, just as you would in real client advisory.

The amendment also tests your ability to apply law to facts. You may see questions asking you to advise a client on a tribunal order in light of the amendment, or to calculate the maximum penalty for non-compliance. Study the practical application, not just the rule.