RERA and Joint Development Agreements: Legal Status of Landowners as Co‑Promoters

Introduction

Real estate projects in India frequently adopt joint development structures where landowners contribute land and developers bring in finance, expertise, and execution capability. With the advent of the Real Estate (Regulation and Development) Act, 2016 (RERA), a recurring question has arisen:

Can landowners in a joint development arrangement approach RERA as “aggrieved persons” or “allottees”, or are they to be treated as “promoters”?

Recent decisions, especially from the Telangana Real Estate Appellate Tribunal and various state RERA authorities, have clarified that landowners who participate in development and share in the project benefits are generally regarded as promoters or co‑promoters, not as allottees or aggrieved persons under the Act.

This article explains:

  • When a landowner is treated as a promoter under RERA
  • Why such landowners cannot usually invoke Section 31 as “aggrieved persons”
  • How different state RERA authorities have formally recognized landowners as co‑promoters
  • Key case law that draws the line between “landowner as promoter” and “allottee”
  • Practical implications for drafting joint development agreements and choosing the correct dispute forum

Background: Telangana Real Estate Appellate Tribunal on Landowners’ Status

Facts of the Dispute

In Mohammad Mustaq and others v. Sonali Housing Projects Private Limited, decided on 24 October 2025 by the Telangana Real Estate Appellate Tribunal, Hyderabad, the complainants were landowners who had:

  • Entered into a Joint Development Agreement cum General Power of Attorney with a developer for a residential‑cum‑commercial project
  • Agreed that the project would commence only after all necessary approvals were obtained from GHMC
  • Alleged that the developer started unauthorized excavation without procuring mandatory permissions
  • Issued a legal notice cancelling the development agreement
  • Secured interim orders from a civil court restraining GHMC from granting building permission to the developer
  • Claimed that the developer failed to register the project with the Telangana Real Estate Regulatory Authority (TGRERA)
  • Pointed out that the developer had nevertheless advertised the project, allegedly misrepresenting that all approvals had been obtained

The landowners approached the RERA authorities, seeking relief on the footing that they were aggrieved by the developer’s actions and non‑compliance.

Developer’s Stand

The developer’s counsel argued that:

  • The complainants were landowners, not “allottees” or “aggrieved persons” under the Act
  • Under the scheme of the Act, 2016, the landowners were promoters in terms of the statutory definition
  • Until an Allocation‑cum‑Supplementary Deed was executed, redistributing rights in the constructed area/revenue, the landowners continued to fall within the definition of “promoter”

The central legal issue thus became: Are such landowners entitled to maintain a complaint under Section 31(1) as aggrieved persons, or are they themselves promoters?

Scope of “Promoter” Under RERA: Inclusion of Landowners

Statutory Definition

Under Section 2(zk), RERA defines “promoter” as:

“promoter” means, (i) a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees; or

This definition is intentionally wide and is designed to capture:

  • Developers
  • Builders
  • General Power of Attorney (GPA) holders
  • Colonisers
  • Contractors
  • Landowners participating in real estate projects

The critical phrase is “causes to be constructed”, which extends the ambit of “promoter” beyond the physical builder.

Why Landowners Fall Within “Promoter”

In joint development structures, the landowner typically:

  • Contributes the land as primary capital for the project
  • Authorizes a developer to construct, through a development agreement, GPA or similar instrument
  • Agrees to share either:
    • A specified portion of the built‑up area, or
    • A defined share of the revenue
  • Often participates, directly or indirectly, in marketing, branding, or approval processes

Because the landowner:

  • Causes construction to happen on his/her land; and
  • Derives commercial benefit from the sale of units or share of area;