RERA Section 68 Amended: What TG RERA's October 15 Circular Means for Hyderabad Allottees
A TG RERA circular dated October 15, 2026 records that Parliament amended RERA Section 68, the allottee penalty for ignoring Appellate Tribunal orders, and that Telangana dropped its compounding entry from Rule 33. Here is what changed and what a Hyderabad buyer in a dispute should check.
On October 15, 2026, the Telangana Real Estate Regulatory Authority put out a two-page circular that most homebuyers in Hyderabad will never read. Circular RC.No.D6/3777/2026 tells promoters, agents and allottees that the Government of Telangana has amended Rule 33 of the state's 2017 RERA Rules, and that the change follows an amendment made by Parliament to Section 68 of the Real Estate (Regulation and Development) Act, 2016. Section 68 is one of the few RERA provisions that is aimed at the buyer, not the builder.
The short answer. The TG RERA circular dated 15/10/2026 records that the Jan Vishwas (Amendment of Provisions) Act, 2026, Central Act No. 8 of 2026, amended Section 68, and that G.O.Ms.No.250 dated 14.10.2026 omitted the entry for compounding Section 68 offences from Rule 33 of the Telangana Rules. As first enacted, Section 68 allowed imprisonment of up to one year, or a fine of up to 10 percent of the flat cost, or both, for an allottee who ignored an Appellate Tribunal order. Legal publisher SCC Online reports the substituted section now provides a penalty of up to 10 percent. The trade-off: even on the reported new wording, the money exposure on an Rs 80 lakh flat can still reach Rs 8 lakh.
What exactly did the October 15 circular say?
The circular says Telangana amended Rule 33 of its RERA Rules by omitting the entry relating to compounding of offences punishable under Section 68 of the Act. The TG RERA circular RC.No.D6/3777/2026 lists six references, including G.O.Ms.No.250 of the Metropolitan Area and Urban Development (PLG.III) Department dated 14.10.2026, the original rules notified by G.O.Ms.No.202 dated 31.07.2017, and the Jan Vishwas (Amendment of Provisions) Act, 2026.
The circular states that a copy of G.O.Ms.No.250 has been uploaded on the TG RERA website for reference.
What did Section 68 say before the amendment?
As printed in the Gazette of India text of the RERA Act hosted by TG RERA, Section 68 said that if any allottee fails to comply with, or contravenes, any of the orders or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one year, or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent of the plot, apartment or building cost, or with both.
Section 70 of the same Act is what made compounding relevant. It says that if any person is punished with imprisonment under the Act, the punishment may be compounded by the court on terms and on payment of sums as may be prescribed, and the sum cannot exceed the maximum fine for the offence. Rule 33 of the Telangana Rules is where those prescribed sums sat. Once Telangana removed the Section 68 entry from that rule, the state-level compounding route for a Section 68 offence no longer appears in the Rules.
What does the amended Section 68 provide now?
The official circular confirms that Section 68 was amended but does not quote the new text, so for the substance we rely on legal reporting. SCC Online reported on May 9, 2026 that the earlier imprisonment plus daily fine for allottees who fail to comply with Appellate Tribunal orders has been replaced with a monetary penalty of up to 10 percent of the plot, apartment or building cost. The same report gives the commencement date for the RERA amendment as May 7, 2026, and attributes the notification to the Ministry of Housing and Urban Affairs.
How does Section 68 compare with the other penalty sections?
RERA has a ladder of penalty sections for non-compliance with orders. Sections 63 and 64 cover promoters, Sections 65 and 66 cover agents, and Sections 67 and 68 cover allottees. The first section in each pair deals with orders of the Authority and the second with orders of the Appellate Tribunal. The table below sets out the 2016 text and the reported 2026 change. The circular concerns Section 68 only; it does not refer to Sections 63, 64 or 67.
| Section | Who it covers | Order not complied with | Maximum consequence in the 2016 text | What this run found for 2026 |
|---|---|---|---|---|
| 63 | Promoter | Authority | Penalty up to 5 percent of estimated project cost | Not mentioned in the TG RERA circular |
| 64 | Promoter | Appellate Tribunal | Imprisonment up to 3 years, or fine up to 10 percent of estimated project cost, or both | Not mentioned in the TG RERA circular |
| 67 | Allottee | Authority | Penalty up to 5 percent of plot, apartment or building cost | Not mentioned in the TG RERA circular |
| 68 (as enacted) | Allottee | Appellate Tribunal | Imprisonment up to 1 year, or fine up to 10 percent of plot, apartment or building cost, or both | Amended by Central Act No. 8 of 2026, per the circular |
| 68 (as reported) | Allottee | Appellate Tribunal | Not applicable | Penalty up to 10 percent of the cost, per SCC Online; compounding entry omitted from Rule 33 |
Put into rupees, on an illustrative flat cost of Rs 80 lakh, the 5 percent ceiling under Section 67 works out to Rs 4 lakh and the 10 percent ceiling under Section 68 works out to Rs 8 lakh. These are upper limits written into the law. The actual amount is for the Tribunal to decide.
When would a Hyderabad buyer ever face Section 68?
The Act places duties on the allottee too. Section 19(6) says an allottee who has entered into an agreement for sale shall make necessary payments in the manner and within the time specified in that agreement, and shall pay the share of registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent and other charges. Section 19(7) makes the allottee liable to pay interest at the prescribed rate for delay in those payments.
Disputes over these duties can end up before the Authority, and from there before the Appellate Tribunal. Section 43(5) of the Act lets any person aggrieved by a direction, decision or order of the Authority or an adjudicating officer appeal to the Appellate Tribunal. If the Tribunal then directs an allottee to do something, such as pay a balance with interest or take a step on a unit, Section 68 is the provision that bites if the allottee ignores that direction.
The same Act gives a route beyond the Tribunal. Section 58 allows a person aggrieved by a Tribunal decision or order to file an appeal to the High Court within sixty days from the date of communication, and the High Court may allow a further sixty days if it is satisfied there was sufficient cause for delay. That is the legal way to contest a Tribunal order.
For the full picture of how TG RERA orders are executed once they are passed, read our guide to TG RERA order execution under Form I and Rule 23.
Does this change anything about what builders owe you?
Nothing in the circular touches the promoter's side. Section 64 in the 2016 text provides that a promoter who fails to comply with Appellate Tribunal orders shall be punishable with imprisonment for a term which may extend up to three years, or with fine up to 10 percent of the estimated project cost, or both. The TG RERA circular does not mention Section 64 at all.
The appeal deposit rule is also untouched by the circular. The proviso to Section 43(5) says an appeal filed by a promoter shall not be entertained without the promoter first depositing with the Appellate Tribunal at least thirty percent of the penalty, or a higher percentage fixed by the Tribunal, or the total amount to be paid to the allottee including interest and compensation, or both, before the appeal is heard. For a buyer who has won a refund order, that deposit requirement is often the most practical protection in the whole Act.
If you are still choosing a project, check the promoter's TG RERA registration and quarterly updates before you sign anything. For a Kondapur example, see our profile of Hallmark Altus, and use the Authority's own project search to confirm what you read.
What should an allottee do right now?
For most buyers, nothing changes day to day. For anyone already in litigation, run through these steps with your advocate.
- Download circular RC.No.D6/3777/2026 dated 15/10/2026 from the TG RERA circulars page and keep it with your case papers.
- Locate G.O.Ms.No.250 dated 14.10.2026, which the circular says has been uploaded on the TG RERA website, and read the amended Rule 33 entry.
- Ask your advocate to obtain the gazetted text of the amended Section 68 and of the commencement notification, rather than relying on a news summary.
- List every order or direction of the Authority and the Appellate Tribunal in your matter, with the date it was communicated to you.
- For any Tribunal order you disagree with, note the sixty-day window under Section 58 for an appeal to the High Court, counted from the date of communication.
- Check your own payment record against Section 19(6) and the schedule in your agreement for sale, since unpaid instalments carry interest under Section 19(7).
- If you hold an order against the promoter, track whether the promoter has made the Section 43(5) deposit before any appeal is heard.
Frequently asked questions
What did TG RERA announce on October 15, 2026?
TG RERA circular RC.No.D6/3777/2026 dated 15/10/2026 states that the Jan Vishwas (Amendment of Provisions) Act, 2026 amended Section 68 of the RERA Act, and that Telangana's G.O.Ms.No.250 dated 14.10.2026 amended Rule 33 of the state RERA Rules by omitting the entry on compounding offences punishable under Section 68.
What did Section 68 originally provide for allottees?
As enacted in 2016, Section 68 said an allottee who fails to comply with orders or directions of the Appellate Tribunal shall be punishable with imprisonment up to one year, or a fine for every day of default that may cumulatively reach ten percent of the plot, apartment or building cost, or both.
What does the amended Section 68 provide, according to reports?
SCC Online reported on May 9, 2026 that the imprisonment and daily fine for allottees who ignore Appellate Tribunal orders were replaced with a monetary penalty of up to 10 percent of the plot, apartment or building cost, effective May 7, 2026. Confirm the gazetted wording before relying on it in any proceeding.
How can an allottee challenge an Appellate Tribunal order instead of ignoring it?
Section 58 of the RERA Act allows any person aggrieved by a decision or order of the Appellate Tribunal to file an appeal to the High Court within sixty days from the date of communication. The High Court may allow a further sixty days if satisfied that sufficient cause prevented an earlier filing.
For the wider map of where a buyer complaint goes, from the Authority to the adjudicating officer to the Tribunal, see our explainer on the RERA complaint process and appeal path.
This article explains public documents for general information. It is not legal advice for any specific dispute.
Last updated 2026-11-14. PropNewz Team.
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