Landowners do not qualify as 'promoters' under the Act post-divestment; complaints against them were not maintainable.

JUDGMENT

These appeals are preferred against the common order dated20.8.2025 in REFA Nos.63 of 2025 and connected cases of the Kerala Real Estate Appellate Tribunal, Ernakulam, against the common order dated 10.3.2025 in Complaint Nos.194/2023 and connected cases of the Kerala Real Estate Regulatory Authority, Thiruvananthapuram.

2. The appellants before this Court are the complainants before the Kerala Real Estate Regulatory Authority (hereinafter referred to as “Authority”, for short), Thiruvananthapuram. They claim that they are the allottees of apartments in Haritham tower under the project called “The Greens”, which was formulated pursuant to a joint venture agreement between the land owners and the developer Company, M/s.MIR Realtors Pvt. Ltd. The total extent of the land involved in the project is 11.15 Acres and 685 square links, out of which 87 cents was sold in favour of M/s.MIR Realtors Pvt. Ltd., which is not a party to these proceedings. The sale in respect of 87 cents was completed on 17.12.2011. It is in pursuance of the said transfer, the Company had entered into agreements with the allottees, including the appellants herein, agreeing to convey undivided share in 87 cents together with the built-up area in the flat named “Haritham” to be constructed on the land. Later, it appears that the Company was taken up for insolvency proceedings before the National Company Law Tribunal and a moratorium was issued. Out of the nine complaints lodged before the Authority (K-RERA), it appears that five of the allottees had already preferred complaints against the builder, which were kept pending before the Authority because of the moratorium issued by the National Company Law Tribunal. The complainants in the first round of litigation seem to have taken up the matter before the National Company Law Appellate Tribunal against the proceedings issued by the National Law Company Tribunal. Be that as it may, the present complainants, including five allottees who had already approached the K-RERA with a complaint under Section 31 of the Real Estate (Regulation and Development) Act, 2016 , against the builder, turned around and decided to lodge fresh complaints against the owners contending that though the Company is under liquidation, the owners of the land cannot escape from the liability and will fall within the purview of “promoter” under the Act. But, the complaints were not entertained and were dismissed by the Authority (K-RERA) on 10.3.2025. Aggrieved, the complainants preferred appeals before the Kerala Real Estate Appellate Tribunal, which were also dismissed on 20.8.2025. Hence, the present second appeals.

3. Heard Sri.Bijoy P.Pulipra, the learned counsel appearing for the appellants/complainants.

4. The learned counsel appearing for the appellants contended that the findings rendered by the Authority (K-RERA), as affirmed by the Kerala Real Estate Appellate Tribunal, cannot be sustained. The registration of the project was for the entire 11.15 Acres of land. Merely because the owners, pursuant to a joint venture agreement, decided to transfer a portion of the land in favour of the Company, that by itself will not take out the project from the purview of the Real Estate (Regulation and Development) Act, 2016 . It is immaterial as to whether the Company is under the process of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. By referring to various agreements, including the sale deed and also the agreements for construction entered into between the Company and the allottees, the le