Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced that landowners, investors having an area or revenue share in real estate project to be treated as a promoter. The authority has also released a circular in regards to the same.

The circular stated, till now a promoter was the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sell apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this act or the rules and regulations made thereunder.

The authority noticed that, during the online registration process, especially for on-going projects, it was observed that several developers (who actually obtain building permissions and construct) of the real estate project, have entered into the arrangement with individuals/organizations like landowners or investors, by which the said individuals/organizations are entitled to a share of the total revenue generated from the sale of apartments or share of the total area developed for sale which is also marketed and/or sold by such individuals and organizations.

Source: Daily news and analysis