A recent order by the Goa Real Estate Regulation and Development Authority (RERA) has significant implications for real estate transactions in the state. In Complaint 356 of 2023, titled Ashok Mundkur & Ors Vs Palaceio Property Developers Pvt Ltd, the RERA authority broadened the definition of a “promoter” under the RERA Act.
The complainant, Mr. Ashok Mundkur, filed a complaint with the Goa RERA seeking possession of a flat along with compensation and interest for delay in the project. The respondent, Palaceio Property Developers Pvt Ltd, argued that they were merely a confirming party to the agreement for sale and not the developer responsible for the project’s completion. They further claimed they were neither the seller nor the recipient of the consideration paid by the complainant.
The Goa RERA authority, presided over by Hon’ble Shri S Kumaraswamy, Chairperson, ruled in favor of the complainant. The order held that the respondent, despite claiming to be a confirming party, could be considered a promoter under Section 18 of the RERA Act. This section defines a promoter as any person who undertakes a real estate project or development.
This landmark ruling expands the scope of who can be held accountable under RERA. Signing parties who were previously attempting to shield themselves from liability by claiming a limited role in the project can now be held responsible for project delays and defaults. This provides greater protection for homebuyers by ensuring they have recourse against parties involved in the project, even if they are not the direct developers.
The Goa RERA’s decision serves as a reminder to all parties involved in real estate projects to carefully evaluate their roles and responsibilities. Signing parties should be aware that they may be held accountable under RERA depending on the nature of their involvement in the project. Homebuyers are advised to be cautious when entering into agreements and ensure complete transparency from all parties involved. This ruling empowers them to seek compensation and possession from signing parties who contribute to project delays.
