A Developer is a person who constructs or causes to be constructed an independent building or a building consisting of an 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.

The definition of a Developer is very intricate and complex which not only involves the new constructions but also conversions of existing buildings, plotting of land, commercial construction, Contractor and estate development by any person acting as the holder of attorney from the owner of the land.

In order to escalate the responsibility and accountability towards consumers, the RERA Act 2016 has mandated Real Estate Developers (also known as Real Estate Promoters) to register the Project (measuring more than 500 square meters or more than eight apartments) and obtain a valid registration number before proceeding. He/she is not permitted to market, advertise or sell the units before the registration of the project. If the project is to be developed in phases then the developers have to obtain registration for each phase separately.

The Promoter at the time of the booking and issue of Allotment letter shall be responsible to make available to the Allottee the sanctioned plan, layout plans, along with specifications, approved by the Competent Authority, the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.

As per the RERA Act, the promoter has to maintain a separate account for every project undertaken wherein 70 percent of the money received from the buyers shall be deposited. Such funds can only be used for the purposes of construction and land cost. Such a fund can be maintained with any scheduled bank. The withdrawal from the Separate Account will have to be in proportion to the percentage of completion of the project after it is certified by an engineer, an architect and a chartered accountant.

The promoter is also required to obtain the Completion Certificate or the Occupancy Certificate or both, as applicable, from the relevant competent authority and to make it available to the Allottees individually or to the association of allottees, as the case may be.

If the developer fails to comply with the directions or violates the rules prescribed by RERA or the Appellate Tribunal then, he/she may face imprisonment up to three years with a fine of up to 10% of the total estimated cost of the project in question.