Developer & Promoter Turnkey Compliance
Change of Promoter (Section 15)
Coordination support for promoter-change documentation and approval matters, subject to legal review.
What this service involves
Section 15 restricts a promoter from transferring the majority rights and liabilities in a project to a third party without the prior written consent of two-thirds of allottees (excluding the promoter) and the prior written approval of the Authority. The process needs allottee consent in a provable form.
Support covers structuring, consent documentation, an information note to allottees, the application to the Authority and any hearing. Chartered Accountants address financial transfer and accounts, and advocates document the transfer.
How are consent and approval requirements tested?
Section 15 concerns transfer or assignment of the promoter’s majority rights and liabilities in a project to a third party. It requires prior written consent of two-thirds of allottees, excluding the promoter, and prior written Authority approval. The analysis starts with the actual proposed transfer, not the commercial label used for a restructuring. A company-level change and a project-rights transfer may need different examination.
The consent calculation must follow the statutory explanation: an allottee with multiple bookings is treated as one allottee, and the specified connected-person treatment must be considered. A list of flats is therefore not automatically the correct denominator. Keep the allottee register, eligibility basis, disclosures and consents together so the calculation can be explained and checked.
What must allottees and the Authority be told?
The proposed incoming promoter, transfer terms, remaining works, funding plan and treatment of existing obligations should be stated clearly. Consents obtained on a vague assurance may not establish informed agreement to the transaction eventually filed. Keep document versions stable during the process and obtain advice if material terms change after signatures are collected.
Section 15(2) requires the intending promoter to independently comply with pending obligations under the Act, rules, regulations and agreements. It also states that the transfer does not result in an extension of time for completion. The transfer agreement should not suggest that a new promoter can simply restart all deadlines or leave allottee liabilities with an entity no longer able to perform.
How is an approved transfer implemented?
Prepare a closing checklist covering the Authority’s conditions, executed transfer documents, bank-account changes, updated portal disclosures, professional appointments and communication to allottees. Bank arrangements need to comply with the applicable designated-account directions rather than being treated as a routine change of account holder. Preserve the pre-transfer record for future audit and disputes.
Track obligations that remain with each party and establish a complete handover of plans, approvals, accounts, agreements and pending proceedings. Where consent or approval is disputed, obtain advice before treating the transfer as effective. This service coordinates evidence and documentation; it does not assure approval or absolve either promoter of responsibilities that the law or order preserves.
Practical decision points
A consent exercise based on the number of flats can produce the wrong result where one allottee has several bookings. Prepare the counting basis using the statutory explanation and keep the supporting register with the signed consents. If the incoming promoter or material terms change, obtain advice on whether the existing consents still address the transaction being filed.
The closing pack should identify remaining obligations, outstanding claims, account balances, approvals and document custody at the transfer date. The incoming team needs the full project history, not only current portal access. Each condition in the Authority’s approval should have a named owner and closure evidence.
Communications to buyers should accurately describe the transfer and pending commitments. They should not imply that the new promoter receives a fresh statutory completion period or that earlier claims have automatically disappeared. Those statements would conflict with the need to examine Section 15 and the actual order.
Who needs it
Promoters and incoming promoters, and allottee associations considering a proposed transfer.
Documents usually required
- Project registration documents
- List of allottees and their areas
- Proposed transfer agreement
- Financial statements and escrow details
- Allottee consent forms
Step-by-step process
- Assess the structure against Section 15
- Prepare the information note for allottees
- Collect and verify consents
- Draft transfer documents
- Apply to the Authority and attend hearings
- Update the portal on approval
Typical timeline
Timing depends on consent collection and the Authority’s process. Timing depends on the matter, document readiness and the relevant authority process; confirm the scope and timeline before engagement.
Delivered by
Advocate, Chartered Accountant. The disciplines involved in a particular engagement are confirmed in the proposal.
The scope and responsible professional are identified in the engagement. Professional certificates are signed in the relevant professional or firm's own name. NXS48 is not an examination or certifying body.
Statutory and official references
- RERA Act, 2016, Section 15 (obligation on transfer of majority rights)
- RERA Act, 2016, Section 11 (functions and duties of promoter)
- Maharashtra Registration, Agent, Interest and Disclosure Rules, 2017: project/agent provisions and Rule 18 interest benchmark (read with amendments)
Last reviewed 2026-10-24. Owner-approved for publication. Section references and rates should be verified against the current Act, rules and circulars before reliance. This page is informational, not legal advice.
Frequently asked questions
What consent is required?
Section 15 refers to two-thirds of allottees, excluding the promoter, along with the Authority’s approval. Check current text and rules.
Does the new promoter inherit liabilities?
The Act and the transfer terms determine this; we examine the documents to explain the position.
Related services
Contact us for a tailored proposal
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