Knowing a Promoter from RERA’s Perspective.

This post is another part of the previous post regarding RERA submitted by Abhishek Kumar, Advocate and Akanksha Singh, Advocate.


A Promoter is the builder or the developer who builds apartment, units for the purpose of selling.


The legislature makes it obligatory for the promoters to register its project before selling or offering apartments for sale in such projects. In case a project is to be promoted in phases, then each phase shall be considered as a standalone project, and the promoter shall obtain registration for each phase. However to save the interest of small builders and some ongoing projects which has received the completion certificate, the legislature has excluded certain categories of project from the requirement of registration. These are:

  • Where the area of land proposed to be promoted does not exceed 500 square meters or the number of apartments to be constructed in the project does not exceed eight apartments.
  • Projects where the completion certificate has been received prior to the commencement of the Act;
  • Projects for the purpose of renovation or repair or re-development which does not involve marketing, advertising, selling and new allotment of any apartment plot or building.

In case of ongoing projects at the time of commencement of this Act, which have not received the completion certificate, application for registration of the said project shall be made within three months from the date of commencement of the Act.

Obligations of promoter in case of transfer of a project to a third party( Section 15):

  1. The promoter shall not transfer or assign his majority rights and liabilities to a third party without prior consent from two-third allottees, except the promoter, and without prior written approval of the Authority.
  2. Such transfer shall not affect the allotment or sale of the apartment, plot or building in the project made by the erstwhile promoter.
  3. For the purpose of this section, the allottee, irrespective of the number of apartments or plots, booked by him or in the name of his family, companies or firms or any association of individuals, shall be considered as one allottee only.
  4. After the permission of transfer or assignment by the allottees and the Authority, the intending promoter shall independently comply with the all the pending obligations under the provisions of this Act or rules and regulations made thereunder, and the pending obligations as per the agreement for sale entered into by the erstwhile promoter with the allottees.

Any transfer under this section shall not result in extension of time to the intending promoter to complete the project and he shall be required to comply with all the pending obligations of the erstwhile promoter, and in case of default, he shall be liable to the consequences of the breach or delay.