Maharashtra RERA issues procedure for transferring or assigning promoter’s rights and liabilities to a third party

Jun 25, 2019 | by Avantis RegTech Legal Research Team


The Maharashtra Real Estate Regulatory Authority (RERA) has revised the procedure for the purpose of transfer of promoter’s rights and liabilities to a third party in accordance with the provisions of Section 15 of the Real Estate (Regulation and Development) Act, 2016.

Therefore, in supersession of a procedure which was prescribed for the purpose of transfer or assigning promoters right vide MahaRERA Circular No. 11/2017 dated November 08, 2017, the revised procedure detailed herein shall be followed with immediate effect.

Explanation – 

(i) For the purpose of this section, changes in (internal) shareholding or constituents of a promoter's organization, that doesn't affect obligations and liabilities with respect to the Allottee(s) and the rights and liabilities of the promoter's organization, shall not require the aforementioned approvals, 

(ii) Any Conversion of the promoter entity under any statute, of

a) Partnership Firm into LLP or Private Limited Company or,

b) Conversion of Private Limited company or unlisted Co to a LLP or otherwise,

c) Proprietorship change by succession to legal heirs

shall not require the aforesaid approvals.

The Maharashtra RERA has given a further clarification regarding:

• the cases where the transfer is initiated by the promoter; 

• the cases where the transfer is initiated by a third party;

• the procedure for updating details of new promoter;

[Circular No. 24/2019]

Click here to download the Circular.

 


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