Relief for Homebuyers: New Amendment to Real Estate Act

The Indian government has proposed an amendment to the Real Estate (Regulation and Development) Act, 2016, introducing a financial penalty system for non-compliance by allottees, relieving them from the threat of imprisonment.

On Friday, Minister of State for Commerce and Industry, Jitin Prasada, introduced the Jan Vishwas (Amendment of Provisions) Bill, 2026, in the Lok Sabha. The new provision seeks to swap the existing punishment of a jail term with a penalty that can extend to ten percent of the property's cost.

This amendment aims to safeguard homebuyers' interests while promoting accountability and transparency within the real estate sector, following RERA's initial regulations. Projects must register with the Real Estate Regulatory Authority, which can enforce further action if project registration lapses or is revoked.