Landowner as Promoter - The term ‘promoter’ in RERA generally refers to the entity responsible for constructing or causing the construction of a real estate project. A landowner is not automatically considered a promoter for all functions and duties under RERA; they are distinguished from promoters unless explicitly involved in construction activities or designated as such ["POOJA CONSTRUCTIONS VS SECRETARY KERALA URANMA DEVASWOM BOARD - Kerala"].
Promoter Definition and Liability - Under Section 2(zk) of RERA, a promoter includes persons or entities involved in constructing a building or causing its construction, including those who get the building constructed through others. Even persons who merely invest or hold rights in the project without direct involvement in construction can be considered promoters, and they are liable for project obligations, including refunds and compliance ["Wadhwa Group Housing Private Ltd. VS Vijay Choksi - Bombay"], ["Saera Auto India Pvt. Ltd. VS Sunil Yadav And Laxman Yadav - Punjab and Haryana (2022)"].
Landowner as Promoter - A landowner who executes an agreement with a builder to develop a property they own, with no direct involvement in construction, may not fall under the definition of ‘promoter’ unless they are actively involved in construction activities or are designated as such under Section 2(zk) ["POOJA CONSTRUCTIONS VS SECRETARY KERALA URANMA DEVASWOM BOARD - Kerala"].
Change of Promoter & Jurisdiction - When a promoter changes (e.g., due to sale or transfer of rights), the new promoter can be recognized under RERA, and procedures such as deactivating old login IDs and issuing new ones are followed. Disputes between landowners and promoters are generally addressed within the framework of RERA, and authorities have jurisdiction over such matters ["Complaint No. F.3(503) RJ RERA P 2017 titled Suo Moto VS Yuvraj Khandelwal (Proprietor Ms Univision Builders) and Shri Inder Pal Singh - Real Estate Regulatory Authority"].
Sale of Rights & Promoter Status - Ex-promoters who sell their rights and interests, including FSI, to new promoters are no longer considered promoters of the project under RERA once the transfer is registered. The new promoter assumes the responsibilities, and the authority’s jurisdiction is limited to the project registered under the new promoter ["Ahimsa Builders vs Ms Mala Sen Anr - Real Estate Regulatory Authority"].
Promoter’s Obligation & Project Completion - Promoters are bound by registered agreements to hand over possession by specified dates. Failure to do so without valid reasons can lead to adverse findings by authorities. Promoters must adhere to timelines and obligations under RERA agreements, and their failure to do so can result in legal consequences ["Sanvo Resorts Pvt. Ltd. VS Shital Nilesh Deshmukh - Bombay"], ["SANVO RESORTS PRIVATE LIMITED AND ORS vs MRS. SHITAL NILESH DESHMUKH AND ANR - Bombay"].
Notices & Due Process - Promoters must be properly notified of proceedings; failure to receive notices, especially via email or physical delivery, can lead to ex-parte orders. Lack of awareness due to improper notice can affect the promoter's ability to participate in proceedings ["Complaint No. F.3(503) RJ RERA P 2017 titled Suo Moto VS Yuvraj Khandelwal (Proprietor Ms Univision Builders) and Shri Inder Pal Singh - Real Estate Regulatory Authority"].
Promoter’s Responsibilities & Challenges - Promoters are responsible for project completion and possession handover. Delays often occur due to factors beyond their control, such as sales slump or financial issues, which can be considered in their defense but do not absolve them of obligations under RERA ["Abhishek Sukhadia anr vs Ms Pragatej Builders Developers P Ltd - Real Estate Regulatory Authority"].
Analysis and Conclusion:A landowner is not automatically classified as a promoter under RERA unless actively involved in construction activities or designated as such. The promoter’s definition is broad, encompassing persons/entities involved in construction, including those who purchase rights or FSI from ex-promoters. Changes in promoter status are managed through formal procedures, and liability for project obligations lies primarily with the designated promoter. Landowners who do not participate directly in construction generally do not qualify as promoters, but their involvement in development activities can influence their status. Proper notice and adherence to RERA procedures are essential for enforceability.
