11. Functions and duties of promoter.—(1) The promoter shall, upon receiving his Login Id and
password under clause (a) of sub-section (1) or under sub-section (2) of section 5, as the case may be,
create his web page on the website of the Authority and enter all details of the proposed project as
provided under sub-section (2) of section 4, in all the fields as provided, for public viewing, including—
(a) details of the registration granted by the Authority;
15
(b) quarterly up-to-date the list of number and types of apartments or plots, as the case may be,
booked;
(c) quarterly up-to-date the list of number of garages booked;
(d) quarterly up-to-date the list of approvals taken and the approvals which are pending
subsequent to commencement certificate;
(e) quarterly up-to-date status of the project; and
(f) such other information and documents as may be specified by the regulations made by the
Authority.
(2) The advertisement or prospectus issued or published by the promoter shall mention prominently
the website address of the Authority, wherein all details of the registered project have been entered and
include the registration number obtained from the Authority and such other matters incidental thereto.
(3) The promoter, at the time of the booking and issue of allotment letter shall be responsible to make
available to the allottee, the following information, namely:—
(a) sanctioned plans, layout plans, along with specifications, approved by the competent
authority, by display at the site or such other place as may be specified by the regulations made by the
Authority;
(b) the stage wise time schedule of completion of the project, including the provisions for civic
infrastructure like water, sanitation and electricity.
(4) The promoter shall—
(a) be responsible for all obligations, responsibilities and functions under the provisions of this
Act or the rules and regulations made thereunder or to the allottees as per the agreement for sale, or to
the association of allottees, as the case may be, till the conveyance of all the apartments, plots or
buildings, as the case may be, to the allottees, or the common areas to the association of allottees or
the competent authority, as the case may be:
Provided that the responsibility of the promoter, with respect to the structural defect or any other
defect for such period as is referred to in sub-section (3) of section 14, shall continue even after the
conveyance deed of all the apartments, plots or buildings, as the case may be, to the allottees are
executed.
(b) be responsible to obtain the completion certificate or the occupancy certificate, or both, as
applicable, from the relevant competent authority as per local laws or other laws for the time being in
force and to make it available to the allottees individually or to the association of allottees, as the case
may be;
(c) be responsible to obtain the lease certificate, where the real estate project is developed on a
leasehold land, specifying the period of lease, and certifying that all dues and charges in regard to the
leasehold land has been paid, and to make the lease certificate available to the association of allottees;
(d) be responsible for providing and maintaining the essential services, on reasonable charges, till
the taking over of the maintenance of the project by the association of the allottees;
(e) enable the formation of an association or society or co-operative society, as the case may be,
of the allottees, or a federation of the same, under the laws applicable:
Provided that in the absence of local laws, the association of allottees, by whatever name called,
shall be formed within a period of three months of the majority of allottees having booked their plot
or apartment or building, as the case may be, in the project;
(f) execute a registered conveyance deed of the apartment, plot or building, as the case may be, in
favour of the allottee along with the undivided proportionate title in the common areas to the
association of allottees or competent authority, as the case may be, as provided under section 17 of
this Act;
16
(g) pay all outgoings until he transfers the physical possession of the real estate project to the
allottee or the associations of allottees, as the case may be, which he has collected from the allottees,
for the payment of outgoings (including land cost, ground rent, municipal or other local taxes, charges
for water or electricity, maintenance charges, including mortgage loan and interest on mortgages or
other encumbrances and such other liabilities payable to competent authorities, banks and financial
institutions, which are related to the project):
Provided that where any promoter fails to pay all or any of the outgoings collected by him from
the allottees or any liability, mortgage loan and interest thereon before transferring the real estate
project to such allottees, or the association of the allottees, as the case may be, the promoter shall
continue to be liable, even after the transfer of the property, to pay such outgoings and penal charges,
if any, to the authority or person to whom they are payable and be liable for the cost of any legal
proceedings which may be taken therefor by such authority or person;
(h) after he executes an agreement for sale for any apartment, plot or building, as the case may be,
not mortgage or create a charge on such apartment, plot or building, as the case may be, and if any
such mortgage or charge is made or created then notwithstanding anything contained in any other law
for the time being in force, it shall not affect the right and interest of the allottee who has taken or
agreed to take such apartment, plot or building, as the case may be;
(5) The promoter may cancel the allotment only in terms of the agreement for sale:
Provided that the allottee may approach the Authority for relief, if he is aggrieved by such
cancellation and such cancellation is not in accordance with the terms of the agreement for sale, unilateral
and without any sufficient cause.
(6) The promoter shall prepare and maintain all such other details as may be specified, from time to
time, by regulations made by the Authority.
12. Obligations of promoter regarding veracity of the advertisement or prospectus.—Where any
person makes an advance or a deposit on the basis of the information contained in the notice,
advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be,
and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be
compensated by the promoter in the manner as provided under this Act:
Provided that if the person affected by such incorrect, false statement contained in the notice,
advertisement or prospectus, or the model apartment, plot or building as the case may be, intends to
withdraw from the proposed project, he shall be returned his entire investment along with interest at such
rate as may be prescribed and the compensation in the manner provided under this Act.
13. No deposit or advance to be taken by promoter without first entering into agreement for
sale.—(1) A promoter shall not accept a sum more than ten per cent. of the cost of the apartment, plot, or
building as the case may be, as an advance payment or an application fee, from a person without first
entering into a written agreement for sale with such person and register the said agreement for sale, under
any law for the time being in force.
(2) The agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed
and shall specify the particulars of development of the project including the construction of building and
apartments, along with specifications and internal development works and external development works,
the dates and the manner by which payments towards the cost of the apartment, plot, or building, as the
case may be, are to be made by the allottees and the date on which the possession of the apartment, plot or
building is to be handed over, the rates of interest payable by the promoter to the allottee and the allottee
to the promoter in case of default, and such other particulars, as may be prescribed.
14. Adherence to sanctioned plans and project specifications by the promoter.—(1) The
proposed project shall be developed and completed by the promoter in accordance with the sanctioned
plans, layout plans and specifications as approved by the competent authorities.
(2) Notwithstanding anything contained in any law, contract or agreement, after the sanctioned plans,
layout plans and specifications and the nature of the fixtures, fittings, amenities and common areas, of the
17
apartment, plot or building, as the case may be, as approved by the competent authority, are disclosed or
furnished to the person who agree to take one or more of the said apartment, plot or building, as the case
may be, the promoter shall not make—
(i) any additions and alterations in the sanctioned plans, layout plans and specifications and the
nature of fixtures, fittings and amenities described therein in respect of the apartment, plot or
building, as the case may be, which are agreed to be taken, without the previous consent of that
person:
Provided that the promoter may make such minor additions or alterations as may be required by the
allottee, or such minor changes or alterations as may be necessary due to architectural and structural
reasons duly recommended and verified by an authorised Architect or Engineer after proper declaration
and intimation to the allottee.
Explanation.—For the purpose of this clause, “minor additions or alterations” excludes structural
change including an addition to the area or change in height, or the removal of part of a building, or any
change to the structure, such as the construction or removal or cutting into of any wall or a part of a wall,
partition, column, beam, joist, floor including a mezzanine floor or other support, or a change to or
closing of any required means of access ingress or egress or a change to the fixtures or equipment, etc.
(ii) any other alterations or additions in the sanctioned plans, layout plans and specifications of
the buildings or the common areas within the project without the previous written consent of at least
two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such
building.
Explanation.—For the purpose of this clause, the allottee, irrespective of the number of apartments or
plots, as the case may be, booked by him or booked in the name of his family, or in the case of other
persons such as companies or firms or any association of individuals, etc., by whatever name called,
booked in its name or booked in the name of its associated entities or related enterprises, shall be
considered as one allottee only.
(3) In case any structural defect or any other defect in workmanship, quality or provision of services
or any other obligations of the promoter as per the agreement for sale relating to such development is
brought to the notice of the promoter within a period of five years by the allottee from the date of handing
over possession, it shall be the duty of the promoter to rectify such defects without further charge, within
thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved
allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act.
15. Obligations of promoter in case of transfer of a real estate project to a third party.—(1) The
promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to
a third party without obtaining prior written consent from two-third allottees, except the promoter, and
without the prior written approval of the Authority:
Provided that such transfer or assignment shall not affect the allotment or sale of the apartments, plots
or buildings as the case may be, in the real estate project made by the erstwhile promoter.
Explanation.—For the purpose of this sub-section, the allottee, irrespective of the number of
apartments or plots, as the case may be, booked by him or booked in the name of his family, or in the case
of other persons such as companies or firms or any association of individuals, by whatever name called,
booked in its name or booked in the name of its associated entities or related enterprises, shall be
considered as one allottee only.
(2) On the transfer or assignment being permitted by the allottees and the Authority under
sub-section (1), the intending promoter shall be required to independently comply with all the pending
obligations under the provisions of this Act or the rules and regulations made thereunder, and the pending
obligations as per the agreement for sale entered into by the erstwhile promoter with the allottees:
Provided that any transfer or assignment permitted under provisions of this section shall not result in
extension of time to the intending promoter to complete the real estate project and he shall be required to
comply with all the pending obligations of the erstwhile promoter, and in case of default, such intending
18
promoter shall be liable to the consequences of breach or delay, as the case may be, as provided under this
Act or the rules and regulations made thereunder.
16. Obligations of promoter regarding insurance of real estate project.—(1) The promoter shall
obtain all such insurances as may be notified by the appropriate Government, including but not limited to
insurance in respect of —
(i) title of the land and building as a part of the real estate project; and
(ii) construction of the real estate project.
(2) The promoter shall be liable to pay the premium and charges in respect of the insurance specified
in sub-section (1) and shall pay the same before transferring the insurance to the association of the
allottees.
(3) The insurance as specified under sub-section (1) shall stand transferred to the benefit of the
allottee or the association of allottees, as the case may be, at the time of promoter entering into an
agreement for sale with the allottee.
(4) On formation of the association of the allottees, all documents relating to the insurance specified
under sub-section (1) shall be handed over to the association of the allottees.
17. Transfer of title.—(1) The promoter shall execute a registered conveyance deed in favour of the
allottee along with the undivided proportionate title in the common areas to the association of the allottees
or the competent authority, as the case may be, and hand over the physical possession of the plot,
apartment of building, as the case may be, to the allottees and the common areas to the association of the
allottees or the competent authority, as the case may be, in a real estate project, and the other title
documents pertaining thereto within specified period as per sanctioned plans as provided under the local
laws:
Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the
association of the allottees or the competent authority, as the case may be, under this section shall be
carried out by the promoter within three months from date of issue of occupancy certificate.
(2) After obtaining the occupancy certificate and handing over physical possession to the allottees in
terms of sub-section (1), it shall be the responsibility of the promoter to handover the necessary
documents and plans, including common areas, to the association of the allottees or the competent
authority, as the case may be, as per the local laws:
Provided that, in the absence of any local law, the promoter shall handover the necessary documents
and plans, including common areas, to the association of the allottees or the competent authority, as the
case may be, within thirty days after obtaining the 1
[completion] certificate.
18. Return of amount and compensation.—(1) If the promoter fails to complete or is unable to give
possession of an apartment, plot or building,—
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed
by the date specified therein; or
(b) due to discontinuance of his business as a developer on account of suspension or revocation of
the registration under this Act or for any other reason,
he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project,
without prejudice to any other remedy available, to return the amount received by him in respect of that
apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf
including compensation in the manner as provided under this Act:
Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the
promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be
prescribed.
(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title
of the land, on which the project is being developed or has been developed, in the manner as provided
1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347(E), for “occupancy”
(w.e.f. 28-10-2016).
19
under this Act, and the claim for compensation under this subsection shall not be barred by limitation
provided under any law for the time being in force.
(3) If the promoter fails to discharge any other obligations imposed on him under this Act or the rules
or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale,
he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act.