Classification Of Society As A Promoter Under RERA

The question whether a society is a "promoter" under Real Estate (Regulation and Development) Act, 2016 ("RERA") has acquired immense significance since the onset of RERA especially owing to the exhaustive definition of promoter provided under RERA. This question has also been dealt with by multiple courts in the past wherein it has been held that classification of a society as a promoter depends on multiple aspects including the society's role and entitlements within the development framework, the structure of the development agreement, and how the project is registered and disclosed to the relevant RERA authority. This article sets out the statutory position and analyses a recent order passed by the Maharashtra Real Estate Appellate Tribunal ("MahaREAT") in the case of D. N. Nagar Shivneri CHS Ltd. Vs Kamila Parasmal Jain & Ors.¹ ("Shivneri Matter") that shapes the current position on this issue.