False Information in a RERA Registration: What Sections 60 and 61 Mean for Bengaluru Buyers
Section 60 of the RERA Act penalises a promoter who provides false information or breaches Section 4 registration rules with up to five per cent of the estimated project cost, and Section 61 does the same for other contraventions. Which declarations Bengaluru buyers should test and how to seek compensation.
A Bengaluru buyer reads a project's RERA registration page and finds a sworn declaration that the land is free from all encumbrances. A year later, a bank's notice turns up showing the land was mortgaged all along. Or the declared list of the promoter's past projects quietly leaves out the one that is still in litigation. What does the Real Estate (Regulation and Development) Act, 2016 do about a registration filing that turns out to be false? Section 60 answers that, and Section 61 covers almost every other breach.
The short answer. Section 60 says a promoter who provides false information or contravenes Section 4, the provision on applications for registration, is liable to a penalty of up to five per cent of the estimated cost of the real estate project, as determined by the Authority. Section 61 sets the same ceiling, up to five per cent, for contravening any other provision of the Act, rules or regulations, apart from Sections 3 and 4. The trade-off: these penalties go to the regulator, not to you, so a buyer harmed by a false declaration also needs to pursue their own remedies, such as compensation, alongside any penalty proceedings.
What does a promoter declare when registering a project?
A long list, much of it under oath. Section 4(2) of the RERA Act requires the application to enclose, among other things, brief details of projects launched by the promoter in the past five years, including their current status, any delay in completion, details of cases pending, details of type of land and payments pending.
It also requires authenticated copies of approvals and the commencement certificate, the sanctioned plan, layout plan and specifications, the plan of development works including fire fighting, drinking water, emergency evacuation and renewable energy, location details with demarcated boundaries, and the proforma allotment letter, agreement for sale and conveyance deed.
The core is Section 4(2)(l): a declaration supported by an affidavit, signed by the promoter or an authorised person, stating that the promoter has legal title to the land, that the land is free from all encumbrances or giving details of any encumbrances, the time period within which the project will be completed, that 70 per cent of amounts realised from allottees will be kept in a separate account in a scheduled bank for construction and land cost, and that all pending approvals will be taken on time.
What is the penalty if that information is false?
Up to five per cent of the estimated project cost. Section 60 says that if any promoter provides false information or contravenes the provisions of Section 4, the promoter is liable to a penalty which may extend up to five per cent of the estimated cost of the real estate project, as determined by the Authority.
The Ministry of Housing and Urban Affairs summarises the same provision in its FAQs on the RERA Act dated July 2025: if the promoter defaults on matters covered by Section 4, the promoter is liable to a penalty of up to five per cent of the estimated cost of the project.
Section 61 covers the rest. If a promoter contravenes any other provision of the Act, other than Sections 3 and 4, or the rules or regulations, the promoter is liable to a penalty which may extend up to five per cent of the estimated project cost, as determined by the Authority.
| Provision | What it covers | Maximum penalty on the promoter |
|---|---|---|
| Section 59(1) | Not registering a project as required by Section 3 | Up to 10 per cent of estimated project cost |
| Section 60 | False information, or contravening Section 4 on registration applications | Up to 5 per cent of estimated project cost |
| Section 61 | Contravening any other provision, rule or regulation | Up to 5 per cent of estimated project cost |
| Section 63 | Not complying with the Authority's orders | Up to 5 per cent, cumulatively, for each day of default |
| Section 64 | Not complying with the Appellate Tribunal's orders | Up to 10 per cent, or up to 3 years, or both |
How does the regulator handle the application itself?
Within a fixed window. Section 5(1) says that on receiving an application under Section 4(1), the Authority shall, within thirty days, either grant registration, with a registration number and a login for the promoter to create the project's web page and fill in its details, or reject the application for reasons recorded in writing if it does not conform to the Act, rules or regulations. A proviso says no application shall be rejected unless the applicant has been given an opportunity of being heard.
Section 4(3) required each Authority to operationalise a web-based online system for registration applications within a year of its establishment. That is why the declarations and documents a promoter files are, in principle, visible to buyers on the regulator's portal.
Registration is therefore not a certificate that every declaration is true. It is the start of a public record, and Section 60 is the consequence if the record turns out to be false.
Which declarations should a buyer test first?
The ones that would hurt most if wrong. Start with title and encumbrances under Section 4(2)(l)(A) and (B). Ask for the title documents referred to in the declaration, and run your own encumbrance check rather than relying on the affidavit alone.
Next, the promoter's past projects under Section 4(2)(b). The disclosure is supposed to include delays and pending cases. Cross-check it against what you can find about those projects, including any RERA orders. PropNewz explained how to read that disclosure in our guide to a builder's Section 4 track record.
Then the completion date under Section 4(2)(l)(C) and the separate account under Section 4(2)(l)(D). A completion date that already looks unrealistic, or vagueness about which bank holds the 70 per cent account, is a reason to ask more questions before you pay.
Does the penalty help the buyer directly?
Not by itself. Sections 60 and 61 impose penalties on the promoter, determined by the Authority. They do not, on their own, award compensation to an allottee. A buyer who has suffered loss because of false information needs to pursue the remedies the Act provides to allottees.
Two are directly relevant. Section 18(2) deals with compensation where the allottee suffers loss due to defective title of the land, which PropNewz covered in our explainer on defective title compensation. Section 18(2) adds that a claim for compensation for defective title shall not be barred by limitation under any law in force. Section 12 deals with compensation where a person makes an advance or deposit on the basis of information in a notice, advertisement or prospectus, or a model apartment, and sustains loss because of an incorrect or false statement in it. Its proviso says a person who wants to withdraw from the project in that situation shall be returned the entire investment with interest at the prescribed rate, along with compensation.
A penalty proceeding and a compensation claim can therefore sit side by side. The penalty punishes the false filing. The compensation claim addresses what it cost you. When you complain, ask for both, and be specific about which declaration was false and how you relied on it.
How do you raise a false declaration with the regulator?
Through a complaint, with documents. Section 31(1) lets any aggrieved person complain to the Authority or the adjudicating officer about a violation of the Act, rules or regulations against a promoter. A false Section 4 declaration is a violation the Authority can act on under Section 60.
Attach the declaration as it appears on the project's registration page, the document that contradicts it, such as an encumbrance certificate or a court record, and a short chronology. Explain whether you relied on the declaration when you booked. That reliance matters for compensation claims under Section 12 or Section 18.
What should a Bengaluru buyer check before booking?
Read the registration file the way an auditor would. Work through this checklist.
- Download the project's registration details and the promoter's Section 4(2)(l) declaration from the K-RERA portal.
- Match the declared land title documents against the survey numbers in your draft agreement for sale.
- Run an independent encumbrance check on the project land.
- Cross-check the list of the promoter's past five years' projects, including declared delays and cases.
- Note the declared completion date and compare it with what the sales team is promising.
- Ask which scheduled bank holds the separate 70 per cent account.
- Keep a dated copy of every declaration you relied on, in case you need to prove reliance later.
The same reading applies whether you are buying an apartment or a villa unit, for example in a project such as Krishvi E Villa in Attibele. The registration file is the promoter's sworn account of the project, and it is worth reading before the brochure.
Frequently asked questions
What is the penalty for false information in a RERA registration?
Section 60 of the RERA Act says a promoter who provides false information or contravenes Section 4, which governs applications for registration, is liable to a penalty of up to five per cent of the estimated cost of the real estate project, as determined by the Authority.
What does a builder declare under Section 4(2)(l) of RERA?
The promoter files an affidavit-backed declaration covering legal title to the land, whether the land is free of encumbrances or details of any, the completion period, keeping 70 per cent of allottee payments in a separate scheduled bank account for land and construction cost, and taking pending approvals on time.
Does a RERA penalty on the builder compensate the buyer?
Not by itself. Penalties under Sections 60 and 61 are imposed on the promoter by the Authority. A buyer who suffers loss should pursue allottee remedies such as compensation under Section 12 for false information relied on when paying, or under Section 18(2) for defective title.
What penalty applies to other RERA violations by a builder?
Section 61 of the RERA Act says a promoter who contravenes any other provision of the Act, or the rules or regulations, other than Sections 3 and 4, is liable to a penalty of up to five per cent of the estimated cost of the real estate project, as determined by the Authority.
Last updated 2026-10-24. PropNewz Team.
Contact Us
Stay updated with latest news and new projects!
Tell us what you want, We'll do the rest.
Share your budget and where you're looking. An advisor who has actually walked the sites will shortlist a handful of RERA-registered projects and tell you which to skip.