BHUBANESWAR: Real estate professionals and homebuyers in Odisha have expressed approval of the Central government’s decision to replace imprisonment for non-compliance with tribunal orders under the Real Estate (Regulation and Development) Act, 2016 (RERA) with monetary fines.
Legal and real estate specialists have described this change as part of a larger initiative to decriminalize business regulations and alleviate the pressures on courts. “This amendment aligns RERA with the government’s broader goal of easing the legal landscape for minor offenses, facilitating a better living and business environment,” stated real estate expert Bimalendu Pradhan.
On May 7, the Ministry of Housing and Urban Affairs released a letter detailing the amendment to RERA through the Jan Vishwas (Amendment of Provisions) Act, 2026.
Previously, non-compliance with orders from a real estate appellate tribunal could lead to imprisonment of up to one year, along with fines. The latest amendment eliminates this criminal liability, opting instead for financial penalties—a change stakeholders believe will alleviate buyer concerns.
“The former provision often discouraged genuine buyers from pursuing appeals. Many homebuyers, already grappling with financial stress, were apprehensive about the legal ramifications of delayed compliance. Transitioning to monetary penalties is a more realistic and less daunting option,” Pradhan added.
Property consultant Amitabh Sharma noted that this modification will help reduce the workload on real estate tribunals. “Criminal provisions tend to prolong legal proceedings, while civil penalties are simpler to enforce, potentially leading to quicker dispute resolutions,” he mentioned.
Homebuyers in the city have reacted positively to this amendment but stress the need for accountability. “This is a relief. Buyers rarely delay compliance intentionally; often, financial limitations or disputes about the interpretation of orders are at play,” said Ritesh Jena, a software professional who recently purchased a flat in the city.
Industry expert Sritam Moharana expressed concerns that this change might weaken enforcement. “While imprisonment was severe, the fear of strict repercussions ensured compliance. Authorities must guarantee that monetary penalties are substantial enough to deter willful defaulters,” Moharana emphasized.
First-time buyer Priya Mohanty shared similar views, stating, “The amendment is beneficial for buyers, but regulators should closely monitor repeat violations. Otherwise, some individuals may disregard penalties. I hope that fines under the Jan Vishwas provisions are significant to ensure compliance.”
