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28 Sep 2026
Who Is a Co-Promoter Under MahaRERA? Definition, Responsibilities & Compliance
It must be noted that in real estate projects, the developer need not always be the only stakeholder of the project. The project may consist of other stakeholders as well, who earn a portion of the project income or developed area.
According to MahaRERA, such stakeholders might come within the purview of a Promoter (Land Owner/Investor), and hold significant roles under RERA. MahaRERA has made specific provisions for such projects in order to ensure the proper disclosure of all Promoters' rights, duties and liabilities.
What Is a Co-Promoter Under MahaRERA?
Co-promoter has been referred to persons or organizations who have an understanding with the developer and are entitled to a share in the total income generated by selling apartments or share in the total area being developed for sales.
Some of the examples are as follows:
Landlord providing land to the developer and getting a share in apartments or share in the income generated through sales.
An investor investing in a project and receiving a share in the developed area or the income from sales.
Landlord or investor who participates in the marketing and sale of their share in the project.
Under MahaRERA, such participants can also be considered a promoter as per the RERA rules.
Important terminology update
MahaRERA further directed that those land owners or investors who would qualify as promoter will be termed as "Promoters (Land Owners/Investors)" instead of just mentioning them as co-promoters on the website of registration.
Who Can Be a Promoter (Land Owner/Investor)?
An individual can be referred to as the Promoter (Land Owner/Investor) if he/she has been offered some sort of benefit from the arrangement made between him/her and the developer, such as:
Portion of apartments
Portion of area developed
Income generated from sale
Benefits as per the investment or development agreement
It depends upon the terms of the agreement between both the parties and RERA regulations.
Responsibilities of Promoters Under MahaRERA
Landowner and investor promoters are not simply passive parties from a RERA perspective. MahaRERA has stated that such promoters can be jointly liable for the functions and responsibilities under the RERA Act, along with the promoter undertaking the development.
This makes proper documentation and disclosure particularly important.
Key compliance areas include:
1. Correct project registration details
Promoter’s appropriate status must be declared in MahaRERA registration.
2. Disclosure of the agreement
This agreement between the promoters should clearly state the rights and share of each of the promoters. The directions issued by MahaRERA mandate the same to be uploaded on their website.
3. Financial compliance
Regarding withdrawals from the bank account set up for the project, MahaRERA has said that the liabilities of the promoters can be equal, irrespective of the rights given to them under the contract.
4. Consumer-facing responsibilities
The liabilities of the promoter under RERA may not necessarily be those of the builder of the project alone. It is necessary for the landowners and the investors to know about it before they start their projects.
Co-Promoter vs Developer: What's the Difference?
The developer is generally the party responsible for developing the project and obtaining or handling construction-related permissions.
A landowner or investor may have a different contractual role but can still fall within the promoter framework if the arrangement gives them rights or benefits covered by RERA.
The distinction is therefore about the nature of the role, not simply who owns the land or carries out construction.
Why Is Co-Promoter Compliance Important?
Incorrectly identifying the parties involved in a project can create regulatory and documentation issues.
A properly structured arrangement helps ensure:
Clear allocation of rights and shares
Transparent disclosure to homebuyers
Reduced risk of disputes between landowners, investors and developers
How RERA Vision Can Help
At RERA Vision, we assist promoters, developers, owners and other stakeholders of the real estate industry in meeting the obligations of MahaRERA.
We will help you ensure that the relevant project and promoter details are structured in accordance with RERA requirements.
Final Thoughts
A co-promoter arrangement is more than a private agreement between a developer and a landowner or investor. Under MahaRERA, parties receiving a share of project revenue or developed area may fall within the promoter framework and can have significant compliance responsibilities.
Before registering a project, it is important to review the development agreement, revenue-sharing arrangement, promoter roles and MahaRERA disclosure requirements carefully.
FAQs – Co-Promoter Under MahaRERA
1. Who is a co-promoter under MahaRERA?
Co-promoter is usually an entity that is either the owner of the property or the investor who gets rights like a stake in profits or the area that is developed. Under MahaRERA, the eligible investors and owners can be listed as Promoters (Land Owners/Investors).
2. What is a Promoter (Land Owner/Investor) under MahaRERA?
Promoter (Land Owner/Investor) refers to an individual who comes under the ambit of a promoter under RERA based on his rights and interests in the project.
3. Is a landowner considered a co-promoter under MahaRERA?
In cases where the agreement between the landowner and the developer involves the landowner receiving certain rights and benefits associated with the sale or development of the property, the landowner will qualify as a promoter for tax purposes.
4. Is an investor considered a co-promoter under MahaRERA?
The investor will fall under the category of promoters in cases where the investment agreement gives him/her a share in profits or in the development of the land/project.
5. What are the responsibilities of a co-promoter under MahaRERA?
Such promoters which are covered under RERA will have duties that are related to project disclosure, compliance, financial liability and the buyer. Maharaera has also laid down that there could be joint liabilities on certain promoters.
6. Does a co-promoter need to be disclosed in MahaRERA registration?
Yes, wherever there is a landowner or an investor who qualifies under the promoter definition, their particulars and position must be properly disclosed in the context of MahaRERA registration.
7. What agreement is required between a developer and co-promoter?
Both the rights and obligations need to be recorded in the agreement between the concerned parties. This might also become a necessity due to the requirements by MahaRERA.
8. Is a co-promoter jointly liable with the developer under RERA?
When a landowner or investor is considered a promoter, MahaRERA has made it clear that promoters may have joint liability under the RERA. Liability of the promoter shall depend on the relevant laws and facts of each case.
9. Can a co-promoter receive a share of apartments?
Yes. The landowner or investor gets a share of the apartments or built-up area as per the deal made between them and the developer. This can have some consequences in terms of their status and responsibilities.
10. What is the difference between a developer and a co-promoter?
In most cases, a developer carries out the development process, whereas the owner or investor contributes either land or money and gets his share in profit or developed land. The developer and landowner both have responsibilities under the RERA Act.
11. Can a co-promoter sell their share of apartments?
The owner or investor can also be entitled to sell the apartments that belong to his/her contractual share according to the agreement, MahaRERA conditions, and any other relevant law.
12. Why is co-promoter compliance important under MahaRERA?
Identifying the promoters accurately will ensure transparency and responsibility to avoid any issues related to compliance or contractual problems with developers, landowners, investors and buyers of homes.
