Section 7 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 7 lets the Authority revoke a project's registration on four grounds: default under the Act, breach of the approval's terms, unfair practice or irregularities, and fraud. It must give at least thirty days' written notice, may choose conditions instead of revocation, and on revocation must debar the promoter, publish the name and have the project account blocked. If you have received a show-cause notice, our legal dispute resolution service can help you respond.
The Authority may revoke a registration on a complaint, suo motu, or on the recommendation of the competent authority, if satisfied of one of four grounds (7(1)). It must first give the promoter not less than thirty days' notice in writing stating the grounds and consider any cause shown (7(2)). Instead of revoking, it may let the registration continue on further terms binding on the promoter (7(3)). On revocation, it debars the promoter from its website, lists him as a defaulter, informs other Authorities, has the project bank account blocked and facilitates the remaining work under section 8 (7(4)).
Section 7 at a glance
| Sub-section | What it provides |
|---|---|
| 7(1) | Who can start it and the grounds (a) to (d) |
| Explanation to 7(1)(c) | Meaning of "unfair practice" |
| 7(2) | Thirty days' written notice; consider cause shown |
| 7(3) | Alternative: keep registration alive on conditions in the interest of allottees |
| 7(4) | Consequences of revocation (a) to (d) |
Section 7(1): who can start it, and on what grounds
The Authority may revoke "on receipt of a complaint or suo motu in this behalf or on the recommendation of the competent authority", after being satisfied that:
| Ground | Text |
|---|---|
| (a) | The promoter makes default in doing anything required by or under this Act or the rules or regulations |
| (b) | The promoter violates any of the terms or conditions of the approval given by the competent authority |
| (c) | The promoter is involved in any kind of unfair practice or irregularities |
| (d) | The promoter indulges in any fraudulent practices |
Three routes start the process: a complaint (by an allottee or anyone else, as the text does not limit the complainant), the Authority's own motion, or a recommendation from the competent authority (the local body that sanctions the plan).
The Explanation: "unfair practice"
The Explanation, attached to clause (c), defines "unfair practice" as a practice which, for the purpose of promoting the sale or development of any real estate project, adopts any unfair method or unfair or deceptive practice, including:
- (A) making any statement, in writing or by visible representation, which (i) falsely represents that the services are of a particular standard or grade; (ii) represents that the promoter has approval or affiliation which the promoter does not have; or (iii) makes a false or misleading representation concerning the services;
- (B) the promoter permits the publication of any advertisement or prospectus, in any newspaper or otherwise, of services that are not intended to be offered.
The word "including" shows the list is not closed. As printed, the Explanation sits between (c) and (d), so the layout is awkward, but the four grounds are as in the table.
Compare the same wording for agents in section 10(c), and the false-advertisement rule in section 12.
Section 7(2): thirty days' notice
"The registration granted to the promoter under section 5 shall not be revoked unless the Authority has given to the promoter not less than thirty days notice, in writing, stating the grounds on which it is proposed to revoke the registration, and has considered any cause shown by the promoter within the period of that notice against the proposed revocation."
| Step | Requirement |
|---|---|
| Notice | In writing, stating the grounds |
| Period | Not less than thirty days (counted in working days, see section 2(r)) |
| Promoter's reply | Cause shown within the notice period must be considered |
The text says "considered", not "accepted". It does not say whether an oral hearing must be held; the earlier sections on grant and extension use the words "opportunity of being heard", while this sub-section uses the notice and "cause shown" wording. State rules may add procedure.
Section 7(3): conditions instead of revocation
"The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter."
This is the middle path. Where a project can still be completed, the Authority can keep it alive with conditions, for example about accounts or timelines (the text itself gives no examples). Note the test is the interest of the allottees, not the promoter's convenience.
Section 7(4): what follows revocation
Upon revocation, the Authority:
- (a) shall debar the promoter from accessing its website in relation to that project, specify his name in the list of defaulters and display his photograph on its website, and inform the other Real Estate Regulatory Authorities in other States and Union territories;
- (b) shall facilitate the remaining development works in accordance with section 8;
- (c) shall direct the bank holding the project bank account, specified under section 4(2)(l)(D), to block the account, and thereafter take necessary actions, including releasing the account again, to facilitate the remaining development works under section 8;
- (d) may issue such directions as it deems necessary to protect the interest of allottees or in the public interest.
Drafting slips in the text: (a) says "revocation or registration" where "revocation of registration" is meant; (c) refers to "sub-clause (D) of clause (I) of sub-section (2) of section 4", where the clause is the declaration clause (l); and "project back account" for "project bank account". The meaning is clear.
Example. Reddy Projects advertises a clubhouse never meant to be built. The Authority issues a thirty-day notice, is not satisfied by the reply and revokes. The name goes on the defaulters list, the account is blocked and section 8 takes over. Had the project been completable, the Authority could instead have kept the registration alive on conditions under 7(3).
The text does not say what happens to allottees' refund rights on revocation. Those are in section 18 and the appeal and adjudication provisions; see our post on penalties under RERA for consequences that follow separately.
Need help with a notice of revocation?
A thirty-day window to show cause is short, and the grounds in 7(1) overlap with advertising, approval and fraud rules. Our legal dispute resolution team can prepare the reply, gather the approval and advertising record and represent you before the Authority.
Key takeaways
- Four grounds: default, breach of approval terms, unfair practice or irregularities, and fraudulent practices.
- Revocation needs at least thirty days' written notice and consideration of cause shown.
- The Authority may keep the registration alive on conditions in the interest of allottees.
- Consequences include debarment, listing as defaulter, informing other Authorities and blocking the project account.
- The remaining work is dealt with under section 8.
Read next
- Section 8: what the Authority does when registration lapses or is revoked
- Section 6: extension of registration
- Penalties under RERA: promoter, agent, allottee
- Common RERA violations by builders
Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.