Section 62 & 65 RERA: Agent Penalty Calculations the UP Exam Tests

Section 62 is the one penalty section that covers two different agent failures

Under Section 62 of the RERA Act, 2016, a real estate agent who fails to comply with or contravenes Section 9 or Section 10 is liable to a penalty of Rs 10,000 for every day during which the default continues. What trips up candidates is that this single section does double duty. Section 9 is about registration: an agent must be registered before facilitating the sale or purchase of any unit in a registered project. Section 10 is about conduct after registration: maintaining records, not facilitating the sale of unregistered projects, not making false statements.

Breach either one and you land under the same Section 62. There is no separate penalty clause for not registering versus misconduct once registered. The bare-act text (confirmed on ibclaw.in and the Wikipedia RERA article) treats both as the same default for penalty purposes, which is exactly why the UP exam leans on this section.

The two-part structure: Rs 10,000 a day, then the 5% cap

The penalty has two moving parts, and you must read them together. First, the daily rate: Rs 10,000 for each day the default continues. This runs cumulatively, so the longer an agent stays non-compliant, the higher the running total climbs. Second, the ceiling: that cumulative daily penalty may extend up to 5% of the cost of the plot, apartment or building for which the sale or purchase was facilitated.

The cap is the part people miss. The 5% figure is not a separate penalty you add on top. It is the maximum the daily accumulation is allowed to reach. Once the running Rs 10,000-a-day total hits 5% of the property cost, it stops there even if the default continues. In practice the Authority still decides the actual quantum within these limits, but for the exam you treat the daily rate and the 5% cap as a single calculation where the lower of the two outcomes is what applies.

The worked example the UP exam actually uses

Take the scenario that appears on RERAExam's UP question-paper page. An agent facilitates the sale of a flat costing Rs 80 lakh. The default runs for 60 days. What is the maximum penalty?

Start with the daily total: 60 days at Rs 10,000 a day comes to Rs 6,00,000. Now apply the cap: 5% of Rs 80,00,000 is Rs 4,00,000. The daily running total (Rs 6 lakh) exceeds the 5% cap (Rs 4 lakh), so the cap overrides. The maximum penalty is Rs 4,00,000, not Rs 6,00,000.

That is the whole trick. Whenever the daily figure comes out higher than 5% of the property cost, the cap wins and the daily number is a distractor. Work both numbers every single time and compare them. You can sanity-check your method against the RERA penalty calculator while you practise.

Section 65: a different trigger, a different penalty logic

Section 65 is the penalty for a real estate agent's failure to comply with orders of the Authority. It sits in Chapter VIII alongside Section 62 (confirmed on nyaytantra.com), but the trigger is completely different. Section 62 fires when you breach your statutory duties under Section 9 or 10. Section 65 fires when the Authority has already passed an order against you and you ignore it.

Think of the sequence. An agent breaches Section 10, the Authority hears the matter and issues an order, and the agent does not comply with that order. The first failure is Section 62 territory; the refusal to obey the order is Section 65 territory. The Act delegates the Section 65 quantum to the Authority's discretion rather than fixing a daily rate the way Section 62 does. No UP-specific order fixing a Section 65 figure for agents was located, so confirm the quantum on up-rera.in rather than quoting a number in your answer.

Both sections can apply in the same enforcement action

These two are not mutually exclusive. One enforcement file can carry both. Picture a property advisor who facilitated a sale while unregistered, which is a Section 9 breach penalised under Section 62. The Authority orders them to register and stop operating. They carry on regardless. That continued defiance of the order is a separate Section 65 default.

So in a which-section-applies question, do not assume you have to pick one. Read what actually happened. If the facts describe a duty breach, it is Section 62. If they describe disobeying an order the Authority has already passed, it is Section 65. If both appear in the same fact pattern, both can run together. Exam setters build these layered scenarios precisely to see whether you can separate the original breach from the refusal to comply with the consequence.

The registration framework that triggers Section 62 in Uttar Pradesh

Section 62 liability only makes sense once you know what registration an agent was supposed to hold. In Uttar Pradesh you apply in Form G, the registration certificate is issued in Form H, and a rejection or revocation notice comes in Form I (confirmed on UP RERA forms tables at rerafiling.com and reraconsultants.com). Renewal is a separate track: you apply in Form J and receive Form K.

Under the UP Rules, registration is valid for ten years (Rule 10(3) as shown in the UP RERA Rules slides), and the Authority may revoke an agent's registration for the reasons set out in Section 9(7) via Rule 12. The registration fee is Rs 25,000 for an individual and Rs 2,50,000 for a non-individual under rule 9(2); renewal is Rs 5,000 or Rs 50,000. The UP agent registration fee breakdown is worth a look if those figures blur together.

How to turn this into marks, and what to do as a practising broker

Section 62 shows up in three recognisable question types on the UP RERA exam: the daily-penalty calculation (multiply days by Rs 10,000), the cap-override scenario (the Rs 80 lakh / 60-day type where 5% wins), and the which-section-applies question that pits Section 62 against Section 65. Drill the calculation until comparing the daily total to 5% is automatic, because under time pressure the easy mistake is to stop at the daily number.

If you want these under a timer, the UP question paper with solved penalty examples and the timed UP mock tests cover the Chapter VIII penalties. On the ground the lesson is simpler: stay registered, keep your Form H current, apply for renewal in Form J at least three months before expiry, and obey any Authority order the day it arrives. That is how you keep Rs 10,000 a day from ever starting to count.