Mumbai: The Bombay HC has observed that the term ‘promoter’ covers a co-promoter as well, even if he hasn’t got money from flat buyers and is jointly liable under Real Estate (Regulatory and Development) Act (Rera) to refund the amount, with interest, for delays.
RERA Provisions On Promoter's Liability
Justice Sandeep Marne said that under the provisions of Rera 2016, which came into effect in 2017, the term ‘promoter’ has been so widely defined that it virtually includes every person associated with the construction of the building. Also, it is not necessary that there has to be an agreement between every promoter and a flat buyer.
The court was hearing a plea by Wadhwa Group Housing Pvt Ltd challenging the joint liability on it as a co-promoter for having joined in as co-developer in an SRA project in Andheri.
RERA Tribunal Decision and Refund Liability for Wadhwa Group
In October 2022, the Rera appellate tribunal fastened Wadhwa Group with the refund liability. Wadhwa Group and SSS Escatics, in 2013, entered into a joint development agreement by which it split between them the constructed area to be sold.
One of the flat buyers, Vijay Choksi, complained to MahaRera and sought a refund of Rs1.2 crore part payment he made to co-developer, SSS Escatics, as it failed to meet the project deadline of 2019.
