Experts, Homebuyers Welcome Replacement of Jail Term Provision in RERA Act

Bhubaneswar, May 15: Experts and homebuyers have welcomed the Centre's decision to replace imprisonment with monetary penalties for allottee non-compliance with RERA tribunal orders. The move aims to decriminalize business laws and reduce court burdens.

Amendment Details

On May 7, a letter by the Ministry of Housing and Urban Affairs was issued regarding the amendment to RERA through the Jan Vishwas (Amendment of Provisions) Act, 2026. Under the earlier framework, an allottee who failed to comply with a real estate appellate tribunal order could face imprisonment of up to a year along with a fine. The recent amendment removes criminal liability and instead provides for financial penalties.

Expert Views

Real estate expert Bimalendu Pradhan said, "The amendment aligns RERA with the government's larger objective of decriminalising minor offences and improving ease of living and doing business." He added that the earlier provision often discouraged genuine buyers from pursuing appeals, as homebuyers already under financial stress were wary of legal consequences even in cases of delayed compliance.

Benefits for Homebuyers

Property consultant Amitabh Sharma pointed out that the change will help lessen the burden on real estate tribunals. "Criminal provisions lengthen litigations, while civil penalties are easier to enforce and could ensure faster resolution of disputes," he said. Homebuyer Ritesh Jena called it "some relief," noting that buyers seldom delay compliance intentionally and that financial constraints or disputes over interpretation of orders often play a role.

Industry Concerns

However, industry expert Sritam Moharana said the move might dilute enforcement. "While imprisonment may have been harsh, fear of strict action ensured compliance. Authorities must ensure that monetary penalties are significant enough to deter wilful defaulters." Priya Mohanty, a first-time buyer, echoed similar sentiments: "The move is buyer-friendly, but regulators should monitor repeat violations closely. I really hope penalties under the Jan Vishwas provisions are hefty."