Section 11 of RERA 2016: Functions and Duties of Promoter
Section 11 of the Real Estate (Regulation and Development) Act, 2016 imposes continuing duties on real estate promoters, from registration and marketing through booking, construction, conveyance and handover. It promotes transparency and protects the rights of allottees.
The term promoter is defined in section 2(zk) and broadly includes a person who constructs or develops a real estate project for sale, as well as other persons covered by that definition. An allottee under section 2(d) is a person to whom a plot, apartment or building has been allotted, sold or otherwise transferred, excluding a tenant. The Authority is the Real Estate Regulatory Authority constituted under the Act.
Detailed functions and duties of a promoter under Section 11
The following explanation follows all six subsections of section 11 and the clauses within subsection (4).
Section 11(1): Public project disclosures
After registration under section 5, the promoter must create a project page on the Regulatory Authority website, supplying the particulars required by section 4(2). The promoter must disclose the registration details and update the following information every quarter: apartments or plots booked (number and type), garages booked, approvals obtained and approvals pending after the commencement certificate, and the project status. Additional information and documents prescribed by the Authority's regulations must also be supplied.
Section 11(2): Advertisements and prospectuses
Every advertisement or prospectus issued or published by the promoter must prominently state the Authority's website address where the registered project details are available, the project registration number and other incidental particulars.
Section 11(3): Information at booking and allotment
At booking and issue of the allotment letter, the promoter must make available the sanctioned plans, approved layout plans and specifications, displayed at the site or another place specified by regulations. The promoter must also provide the stage-wise completion schedule, including water, sanitation, electricity and other civic infrastructure.
Section 11(4)(a): Responsibility until conveyance
The promoter remains responsible for obligations under RERA, the applicable rules and regulations, and the agreement for sale, towards allottees or their association, until conveyance of apartments, plots or buildings to allottees and common areas to the association or competent authority, as applicable. Liability for defects under section 14(3) continues even after execution of conveyance deeds.
Section 11(4)(b): Completion and occupancy certificates
The promoter must obtain the completion certificate, occupancy certificate, or both, as applicable under local or other relevant laws, and provide the certificate to individual allottees or their association.
Section 11(4)(c): Leasehold projects
For projects on leasehold land, the promoter must obtain a lease certificate stating the lease period and confirming payment of all leasehold dues and charges, and make it available to the association of allottees.
Section 11(4)(d): Essential services
The promoter must provide and maintain essential services on reasonable charges until maintenance is taken over by the association of allottees.
Section 11(4)(e): Association of allottees
The promoter must enable formation of an association, society, cooperative society or federation under applicable law. In the absence of local laws, the association must be formed within three months after a majority of allottees have booked their plots, apartments or buildings.
Section 11(4)(f): Conveyance and common areas
The promoter must execute a registered conveyance deed for the apartment, plot or building in favour of the allottee, together with transfer of undivided proportionate title in the common areas to the association or competent authority, as provided by section 17.
Section 11(4)(g): Outgoings and outstanding liabilities
Until transfer of physical possession, the promoter must pay outgoings collected from allottees, including land costs, ground rent, local taxes, water and electricity charges, maintenance, mortgage loans and interest, and other project-related liabilities. Unpaid amounts, applicable penal charges and costs of legal proceedings remain the promoter's liability even after transfer.
Section 11(4)(h): Protection against later mortgages
After entering into an agreement for sale for an apartment, plot or building, the promoter must not mortgage it or create a charge over it. Any mortgage or charge nevertheless created cannot affect the rights and interests of an allottee who has taken or agreed to take it, notwithstanding any other law.
Section 11(5): Cancellation of allotment
Cancellation is permissible only in accordance with the agreement for sale. An aggrieved allottee may approach the Regulatory Authority where cancellation is contrary to the agreement, unilateral and without sufficient cause.
Section 11(6): Additional records
The promoter must prepare and maintain any further particulars required from time to time by the regulations of the Regulatory Authority.
Related provisions under RERA
Section 4 specifies information and documents for project registration; section 5 deals with grant of registration. Section 12 addresses false or misleading advertisements, while section 13 restricts advance payments above 10% without a written and registered agreement for sale.
Section 14(3) generally requires rectification, without further charge, of structural defects and specified other defects brought to the promoter's notice within five years from handing over possession, within 30 days, failing which the allottee may claim compensation. Section 17 governs transfer of title; section 18 concerns return of amount and compensation; and section 19 defines allottees' rights and duties.
Frequently asked questions
What must a promoter update quarterly under section 11?
Bookings of apartments or plots and garages, approvals obtained or pending, project progress and any additional particulars required by the Authority.
Can a promoter cancel a booking unilaterally?
Cancellation must comply with the agreement for sale. The allottee may approach RERA for relief against a cancellation contrary to the agreement, unilateral and without sufficient cause.
Does a promoter remain responsible after conveyance?
Yes. Section 11(4)(a) preserves defect liability for the period in section 14(3), and section 11(4)(g) preserves liability for certain unpaid outgoings.
Official legal sources
Read the Real Estate (Regulation and Development) Act, 2016 (India Code), the Ministry of Housing and Urban Affairs RERA FAQs, and the relevant State or Union Territory Real Estate Regulatory Authority's official website for local rules and current project filings.