Erring Builders in Bihar Face Criminal Charges Under Bharatiya Nyay Sanhita

For the first time in Bihar, real estate developers who defied the orders of the Real Estate Regulatory Authority (RERA) are facing the prospect of arrest. On Thursday, the Chief Judicial Magistrate (CJM) of Patna took cognisance of cases filed against five builders under the Bharatiya Nyay Sanhita (BNSS), setting a precedent for strict legal action in the state’s real estate sector.

The five builders—Green City Real Estate, Agrani Homes Private Limited, Agrani Home Real Marketing Private Limited, Sri Ram Constructions, and Raman and Kumar Constructions—have been accused of failing to comply with directives issued by the RERA Court. Despite repeated orders, they did not register their projects with RERA Bihar as mandated under Section 3 of the RERA Act.

According to officials, the CJM took cognisance of RERA Bihar’s complaints under Section 59(1) of the RERA Act, and the accused now face trial under Section 316(2)/3(5) of the Bharatiya Nyay Sanhita, along with Section 59(2) of the RERA Act. Conviction under BNSS could lead to imprisonment for up to five years.

It may be noted that these builders had advertised and booked apartments and plots without obtaining prior registration of their projects with RERA Bihar, a direct violation of Section 3. Suo motu proceedings were initiated, and penalties were imposed by the RERA Court. However, the promoters neither paid the fines nor complied with the registration requirement, continuing to flout legal provisions.

In response, RERA Bihar approached the CJM court, seeking criminal proceedings under relevant sections of both the BNSS and the RERA Act. If convicted, the promoters may face additional consequences including seizure of their passports and disqualification from contesting elections, among other statutory restrictions.

This marks a significant shift in Bihar’s enforcement of real estate regulations, with authorities signaling zero tolerance for continued defiance of legal mandates.