Duties of promoters

Functions and duties of the promoter

Functions and duties of the promoter

Chapter 3 of the RERA (Real Estate Regulation and Development Act) envisages in itself a detailed list of functions and duties of the promoter. Section 2z (k) of the real estate regulation and development act 2016 defines the word promoter. And, it also enlists the persons who would fall in the purview of the definition. The objective of this act is to safeguard the interest of home buyers. It also brings about standardization in the real estate sector. The act also creates such a mechanism so that transparency in the conduct of promoters can be ensured. The main purpose of enacting the act is to promote accountability, transparency, and efficiency.

  • Create Website Section 11 of the RERA Act stipulates in itself and mandates that a promoter needs to create a webpage on the prescribed authority’s website. And needs to enter all the details and information in regard to the project so that; it is easily available for the public view. He should mention all the necessary details as listed under:
  • Detailed information of the registration granted by the competent authority
  • List of number and type of apartments
  • List of approval taken and pending Approval thereto

The promoter should update all the information quarterly and he should have the full fledge knowledge regarding the same.

  • Advertisement

Section 11 (2) deals with the advertising part. The advertisement and prospectus shall contain the address of the website of the authority. The advertisement shall contain all the relevant information regarding the project including the registration number given by authority.

  • Information to allottees

Section 11 (3) of the act provides that at the time of allotment letter and the booking the promoter must fulfill the responsibility to make available all the information related to the allotment like a sanctioned plan, layout plan, schedule of the completion of the project, etc.

Other responsibility

  • To be responsible for all obligations, responsibilities, and functions under the provisions of the act
  • To provide the completion certificate, occupancy certificate to the allottees either it is individually or to the association and that to be received by a regulatory authority. He will be responsible to obtain the completion certificate or the occupancy certificate
  • To provide the lease certificate to the allottees, he is responsible to obtain the lease certificate where the real estate project is developed on a leasehold land than making the lease certificate available to them.
  • To provide essential services at reasonable rates. He will be responsible for providing and maintaining the essential services on reasonable charge till the taking over of the maintenance of the project by the association of the allottees
  • To enable the formation of an association or society or cooperative society of the allottees or of the federation of the same
  • execute the registered deed of the apartment, flat, plot, or building in favour of the allottee
  • To pay the outgoing until the transfer of physical possession to the allottee
  • The promoter shall prepare and maintain such other details as may be specified from time to time by regulation made by the authority.

Obligations of promoter

Section 12 of RERA provides the obligation being imposed on the promoter in reference to advertisement or prospectus. If any person suffers any kind of loss that occurs to the person making advance payment relying on the prospectus or advertisement then the promoter is liable to compensate them. The person also has the liberty to withdraw the investments with interest from the promoter.

The other responsibility on the promoter is levied by the purview of section 13. The section envisages in itself the obligation to accept any kind of deposit only after the conclusion of an agreement of the sale. The object of the insertion of the section is to make equitable conduct on part of the promoter.


RERA introduces certain important provisions that impugned a bundle of responsibilities on the promoter. And, he needs to adhere to that only, he shall be liable till there is the conveyance of possession. This act also has the capability to enjoin the other activities and go along with them and to that effect, the consumer protection act is recognized through a chapter of RERA


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