RERA Amendment Replaces Jail Terms With Financial Penalties

Dated on: Friday 15th May 2026

The government has amended the Real Estate (Regulation and Development) Act by removing imprisonment provisions for homebuyers who fail to follow orders of the RERA Appellate Tribunal. Instead of facing jail for up to one year, violators may now be required to pay a monetary penalty of up to 10% of the property’s cost. Real estate experts and buyers have welcomed the change, saying it will reduce unnecessary criminalisation and support smoother dispute resolution. The amendment has been introduced under the Jan Vishwas Amendment Act, which focuses on decriminalising minor offences and improving ease of doing business in India’s real estate sector.