CHENNAI: The Tamil Nadu government has amended the Real Estate (Regulation and Development) Act to remove the provision for imprisoning defaulters who fail to comply with orders of the Real Estate Appellate Tribunal.

According to the amendment, which has been notified in the Tamil Nadu Government Gazette, the provision relating to imprisonment under Section 68 of the Act has been omitted. The provision stipulated that any allottee who failed to comply with or contravened an order or direction of the Real Estate Regulatory Authority (RERA) or the Appellate Tribunal, as applicable, would be liable for punishment. The penalty included imprisonment up to one year or a fine, which could extend to 10% of the estimated cost of the plot, apartment or building. 

Under the RERA Act, homebuyers, promoters and real estate agents can approach the regulatory authority with complaints regarding violations of the Act.

The authority can then restrain a promoter, agent or allottee from continuing any activity that is under probe. It can also impose penalties against those who fail to comply with orders of the authority or the Appellate Tribunal.