The much-discussed Real Estate (Regulation and Development) Act,
2016 ("the Act") has now been brought in
force entirely. In addition to stirring the developer community and
causing much delight for the purchasers, the Act also requires
urgent consideration with matters connected with enforcement of
security.
It is commonplace in debt transactions to
'transfer' by way of a mortgage inter
alia, land and/or development rights in favour of a lender as
security for the repayment of debt, although strictly speaking,
development rights, by their very nature, are personal and
incapable of assignment.
Section 15 (1) of the Act states that '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'.
