Functions and Duties of Promoters under RERA Act 2016


The Real Estate Sector is standing second to the Agriculture Industry when speaking in terms of its contribution towards the GDP. This sector places an important role in fulfilling the necessity and demand for various housing and infrastructure in the country. Since a few decades, this sector has significantly grown as it employs a large number of skilled and unskilled resources for a different scope of work. For the orderly growth of this industry, a need for standardization, accountability, and framing proper rules was felt. Hence, the government introduced the RERA (Real Estate Regulation Authority) Act 2016 in order to protect the interest of property buyers. This not just strengthened the trust of the investors in India’s Real Estate Sector but also provided a middle ground for both developers and buyers. It further helped with reducing the risk that was faced by people before this act came into force. In this article, we will look at the functions and duties of “Promoters” under the RERA Act 2016.

Who is a Promoter?

Promoters are developers or manufacturers of buildings/properties. They are responsible for the construction of a building that comprises apartments or bringing changes over a current building. According to RERA, a promoter is a person who performs activities such as construction, reconstruction of existing buildings, plotting of land, acting as a contractor, or a person working as an estate developer.

In broad terms “Promoter” is defined in Section 2 (zk) of the RERA Act 2016 as:

  1. A person who constructs or causes to be construct an independent building or a building consisting of apartments or converts an existing building or a part thereof into apartments for the purpose of selling all or some of the apartments to other persons and includes his assignees; or
  2. A person who develops land into a project whether or not the person also constructs structures on any of the plots for the purpose of selling to other persons all or some of the plots in a set project whether with or without structures thereon; or
  • Any development authority or any other public body in respect of allottees of:
  1. Buildings or apartments as the case may be constructed by such authority or body on lands owned by them or placed at the disposal by the government,
  2. Plots owned by such authority on body or placed at their disposal by the government for the purpose of selling all or some of the apartments of plots; or
  3. An Apex State Level Cooperative Housing Finance Society and primary cooperative housing society which constructs apartments or buildings for its members or in respect of the allottees of such apartments or buildings; or
  4. Any person who acts himself as a builder, colonizer, contractor, developer, estate developer, or by any other name or claims to be acting as a holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale; or
  5. Such other person who constructs any building or apartment for sale to general public.


What are the functions & Duties of a Promoter?

  • The promoter needs to get the proposed project/ venture enlisted with RERA.
  • After enlisting the property, the promoter is required to make a web page and display the project on the website of the RERA in order to make it accessible to the people.
  • The following information should be available in the public domain:
  1. Details of the registration granted by the authority
  2. The list of the number and type of apartments or plots booked on a quarterly basis
  3. Quarterly up-to-date information regarding the approvals taken and the pending approvals subsequent to the commencement certificate
  4. Other documents or information as specified by the Authority.
  • The promoter cannot publicize or make an offer for the project or the proposed venture to the buyers’ prior registration and before filing a copy of the advertisement in the office of the regulating body.
  • The promoter must produce certain documents when booking and issuing a distribution letter such as sanction plans and layout plans which shall be endorsed by experienced professionals.
  • In addition, the promoter is also expected to frame the stage-wise time schedule for the completion of the project and make reference to provisions for civil infrastructure for basic necessities such as water, sanitation, and electricity.
  • The promoter needs to acquire the accumulation certificate and the occupancy certificate from the respective authority as per the local laws or the different laws where the property /proposed project is situated.
  • In case the project is created on a lease-holding land then the promoters need to acquire a declaration indicating the time of rent and ensuring that it is free from all charges and encumbrances.
  • The promoter has to ensure that the registration of the agreement for sale is done as per the prescribed format and in case of any cancelation of allotment things to proceed strictly as prescribed in the agreement for sale.
  • The promoters should not accept an amount more than 10% of the cost of the apartment plot or building as the case may be, as in advance payment or application fee from the buyer without entering into a written agreement for sale.
  • The promoters need to take prior consent of at least two/third of the allottees before making any alterations or additions to the sanction plans, layout plans, or any other specification other than minor additions or alterations.



It is evident as per the RERA Act that the Promoters of the Real Estate Project have the sole responsibility, right from registering the project with the capable authorities, ensuring compliance with various law provisions to completing the project as per the time-wise schedule and finally handing it over to the respective allottees. They are also liable to refund money/ interest to allottees upon failure to deliver the project within the timeframe committed by them.






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