Telangana has amended its real estate rules to remove the provision for compounding an offence involving imprisonment under Section 68 of the Real Estate (Regulation and Development) Act, 2016, while retaining a monetary penalty of up to 10 per cent of the cost of the plot, apartment or building concerned.
The amendment was issued by the state’s municipal administration and urban development department to align the Telangana Real Estate (Regulation and Development) Rules, 2017, with changes made to Section 68 under the Jan Vishwas (Amendment of Provisions) Act, 2026, according to a report by Deccan Chronicle.
The government order omitted an entry from Rule 33 (1) of the Telangana RERA Rules. The deleted provision prescribed an amount equal to 10 per cent of the property cost for compounding an offence punishable under Section 68.
Section 68 applies to allottees who fail to comply with or violate orders or directions issued by the Real Estate Regulatory Authority’s Appellate Tribunal. Before the central amendment, such violations could result in imprisonment of up to one year, a daily fine that could cumulatively extend to 10 per cent of the property cost, or both.
The amendment to the central law has removed the earlier criminal punishment of imprisonment. Section 68 now provides for a monetary penalty of up to 10 per cent of the cost of the plot, apartment or building involved in the violation.
Telangana’s latest order changes the corresponding state rule dealing with the amount payable for compounding offences that carried an imprisonment provision under the Act. The deletion brings the state rules into line with the revised wording of Section 68.
The amendment does not eliminate the consequences of disobeying orders issued by the RERA Appellate Tribunal. The monetary penalty under the amended Section 68 remains applicable, meaning that a person who violates such an order may still face a penalty linked to the value of the concerned real estate asset.
The change is relevant to the enforcement framework governing disputes between real estate allottees and promoters. RERA Appellate Tribunal orders form part of the mechanism through which directions issued under the real estate law are enforced, and Section 68 addresses non-compliance with those directions.
The state government’s action follows the changes introduced through the Jan Vishwas legislation and specifically concerns the alignment of Rule 33 (1) with the amended central provision. The revised Telangana rules therefore remove the earlier compounding reference while preserving the financial consequence specified in Section 68.
