Co-promoter included in the definition of promoter

As per Section 2(zk) of RERA defines the term ‘promoter’ The term ‘promoter’ includes builder, developer, joint developer, co-operative housing society development, development authority and persons doing construction and sale.

MahaRERA issued a circular dated 4^th December, 2017 wherein they have stated that land owners and investors of the project will now be included in the definition of promoter.

Several Developers have entered into arrangements with individuals or organisations like land owners or investors wherein such individuals or organisations are entitled to share of the total revenue generated from the sale of apartments or share in the total area developed for sale.

MahaRERA has included such persons in the definition of promoter and has stated that such persons are jointly liable for the functions and responsibilities specified in the Act

MahaRERA has further stated that:

·         Details of land owners and investors who fall in promoter category shall be specified at the time of online registration

·         Obligations and liabilities of such promoters with respect to withdrawal of amounts from the bank account shall be at par with other promoters

·         Copy of the written arrangement between the promoter and such investor or land owner shall be uploaded on the website of MahaRERA for public viewing

·         Land owner and investor shall also submit Declaration in Form B (Section 4(2)(l) of RERA)

·         Land owners and investors who are entitled to share in the total area developed,  shall also open a separate bank account to deposit 70% of the sale proceeds realized from the allottees of their share