Assam RERA: Landowner Who Completes Stalled Project Becomes Promoter, Liable for Possession and Delay Interest

March 31, 2026 : The Real Estate Regulatory Authority, Assam (RERA Assam) has ruled that a landowner who takes over and completes a stalled housing project steps into the role of a “promoter” under the Real Estate (Regulation and Development) Act, 2016, and is jointly liable with the original developer for obligations owed to homebuyers.

The decision was delivered by Member B.K. Chetri in Dinesh Chandra Deka & Anr. v. M/s Vivek Developers & Anr. (Case No. RERA/ASSAM/COM/2023/43), concerning a dispute over a flat in a G+2 residential building in Ulubari, Guwahati.

The complainants had entered into an agreement for sale dated 3 May 2017 with the developer for a flat measuring 825 sq. ft. for ₹30 lakh and paid ₹17 lakh. Possession was to be delivered within 12 months. However, the developer abandoned the project midway after completing only the structural slab casting up to the G+2 level and later became untraceable.

Subsequently, the landowner, Saumik Sengupta, took over the incomplete project, invested his own funds to finish construction, and assumed possession of the building. He occupied portions of the property and rented out several units. When the allottees sought possession of their flat, the landowner refused, arguing that he had no contractual relationship with them and had not received any sale consideration.

Rejecting this defence, the Authority held that the landowner’s role underwent a fundamental transformation once he assumed control of the project and completed construction. Interpreting Section 2(zk) of the Act, it observed that the definition of “promoter” is broad enough to include any person who constructs or causes construction for sale. Where multiple parties are involved in development and sale, all such persons are deemed promoters and share joint liability.

The Authority categorically held that after taking over and completing the project, the landowner “entered into the shoes of the promoter,” making his liability joint and several with that of the original developer, irrespective of whether he directly received payments from the buyers.

It further emphasized that disputes between the landowner and the developer, including pending civil proceedings, cannot defeat the statutory rights of allottees under RERA. The Authority also noted that the landowner had benefited from the project by occupying and commercially exploiting the building, including portions corresponding to units meant for buyers.

On relief, the Authority directed the landowner to hand over possession of the 825 sq. ft. flat along with one car parking space to the complainants. It also awarded interest at 10.70% per annum on ₹17 lakh from the due date of possession (3 May 2018) till 31 March 2026, quantified at ₹12,85,141, subject to adjustment against the remaining sale consideration payable by the buyers. The order is to be complied with within two months.

The ruling reinforces that once a landowner assumes control over a stalled project and completes it, he cannot avoid statutory obligations under RERA and must honour commitments made to homebuyers.