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MahaRERA issues new guidelines, expands 'promoter' definition

MahaRERA coined new defination to have maximum transparency and also for the removal of doubts

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MahaRERA has declared that land owners, investors having area or revenue share in real estate project to be treated as promoter. A circular in this regard was also released by the authority. Putting the same responsibilities as that a developer has in terms of a real estate project.

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 sells 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 there under

To have maximum transparency and also for the removal of doubts, if any in regard to the definition of the term 'promotor' the authority came out with the circular.

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 arrangement with individuals/organizations like land owners or investors, by which the said individuals/organizations are entitled to a share of the total revenue generated from sale of apartments or share of the total area developed for sale which are also marketed and / or sold by such individuals and organizations.

Hence, they are therefore jointly liable for the functions and responsibilities specified in the act in the same manner as the promoter who actually obtains building permissions and carries out construction.

Such individuals or organizations who fall within the aforesaid definition of the term 'promoter' on account of being landowners or investors, shall be specified as such, at the time of online registration with MahaRERA.

Further each such landowner promoter or investor promoter, who is entitled to a share of the total area developed, should also open separate bank account for deposit of 70 per cent of the sale proceeds received from the allottees of their share. 

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