Landowner In Joint Venture With Developer Not A Homebuyer Under RERA: Madhya Pradhesh REAT

The Madhya Pradesh Real Estate Appellate Tribunal (MP REAT) has recently held that a landowner who enters into a joint venture with a developer for a real estate project cannot claim the status of an allottee under the Real Estate (Regulation and Development) Act, 2016, and must instead be treated as a co-promoter.

A bench of Chairman Justice V.P.S. Chauhan and Judicial Member P.C. Gupta said the RERA Authority lacked jurisdiction to entertain the complaint, as the dispute was not between a promoter and a homebuyer.

The tribunal observed that “a co-promoter cannot be considered as an allottee, even if there is any condition for receiving consideration under the agreement.”

The matter arose from a Joint Venture Agreement executed on August 22, 2012, between the Bhopal Development Authority and landowner Roop Laxmi Singh.

Under the agreement, the landowner contributed about 0.37 acres of land for development, in return for which she was to receive a semi-developed plot. When the plot was not handed over, she approached the RERA Authority, which directed BDA to deliver possession and pay compensation for the delay. Similar relief was granted by the adjudicating officer.

BDA challenged both orders before the Appellate Tribunal, arguing that the relationship between the parties was one of co-promoters and not promoter and allottee.

It contended that any dispute arising from the joint venture was contractual in nature and could only be resolved through a civil forum. The landowner argued that BDA was the promoter and that she was entitled to RERA protection as an allottee.

The tribunal rejected that submission. Referring to the definition of “promoter” under the Act, it held that a person who contributes land and participates in the development assumes the role of a promoter.

It further clarified that "If any dispute arises between the co-promoters in relation to the agreement dated 22/08/2012 or if there is any breach in regards to the joint venture agreement between the parties or promoters, they can take the recourse of civil suit or consumer redressal forum but the dispute would not come under the ambit and scope of the Act."

Accordingly, the tribunal allowed the appeal, set aside the RERA orders, and dismissed the complaint, while leaving the parties free to pursue civil remedies.

Case Title: Bhopal Development Authority v. Roop Laxmi Singh

Citation: 2026 LLBiz REAT (MP) 4

Case Number: Appeal No. 131/2020

For Appellant: Advocate Mehul Bharadwaj

For Respondent: Advocate Tushar Raikwar