Plot Seller With Development Obligations May Fall Within RERA Promoter Definition: Chhattisgarh High Court

The Chhattisgarh High Court has recently held that a company that agrees to develop land, obtain statutory approvals, and secure RERA registration before selling plots could prima facie be treated as a promoter under the real estate law.

A Division Bench of Justice Parth Prateem Sahu and Justice Sachin Singh Rajput dismissed an appeal filed by Admire Infrazone Pvt. Ltd. against a Chhattisgarh Real Estate Appellate Tribunal order remanding a plot buyer's complaint to RERA for fresh adjudication.

“Under the Act of 2016, word promoter has been very widely defined including a person who develops a land into a project whether or not the person also constructs structures on any of the plots and it further provides that any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale.,” the Court held.

The dispute arose from agreements dated December 23, 2019 and December 28, 2019 between Admire Infrazone Pvt. Ltd. and Raipur resident Jaiprakash Keswani. The agreements concerned the purchase of a 4390 sq. ft. plot at village Sejbahar, Raipur.

The agreements recorded that the company would obtain map approval from Town and Country Planning authorities and secure development permission from the Sub-Divisional Magistrate.

It would also carry out diversion proceedings, obtain RERA registration, and undertake development works including roads, drainage, sewer lines, and water supply facilities.

Admire Infrazone argued that Keswani had breached the agreement by failing to make timely payments. It also said criminal proceedings earlier initiated against it had ended in acquittal.

The company contended that Keswani's complaint before RERA was not maintainable. It argued that it was not a promoter and Keswani was not an allottee.

RERA accepted the objection and dismissed the complaint on September 24, 2025, holding that the dispute was civil in nature.

However, on February 11, 2026, the Chhattisgarh Real Estate Appellate Tribunal set aside that order and remanded the matter for fresh adjudication.

Admire Infrazone challenged the remand order before the High Court.

The High Court noted that the agreements themselves showed the company had undertaken obligations connected with the development of the land and statutory compliances.

“it is clear that the appellant-seller had entered into an agreement to sale of the land that he will develop the land, subject matter of the agreement, after taking approval from the competent authority (TNC) as required and therefore prima facie it is appearing that the status of appellant would fall within the definition of promoter which can be further adjudicated and decided by the authority after considering the evidence to be placed on record by the respective parties,” it held.

The Court also held that RERA should not have dismissed the complaint at the threshold merely by treating it as a civil dispute without following the prescribed procedure.

“RERA could have considered and framed the issues on the objection to be raised in reply to be submitted by non-applicant therein, recorded evidence of parties in support of pleadings, for arriving at just conclusion, which has not been done,” it said.

Finding no error in the tribunal's remand order, the High Court dismissed the appeal. It clarified that Admire Infrazone remained free to raise all objections before RERA in the fresh proceedings.

For Appellant (Admire Infrazone Pvt. Ltd.): Advocate Surfaraj Khan.