Your Builder Wants to Hand the Project to Someone Else: What Section 15 of RERA Lets You Decide
If a Bengaluru developer wants to transfer or assign its majority rights and liabilities in a project to another company, RERA Section 15 requires prior written consent from two-thirds of allottees and the Regulatory Authority, with promoter-held flats excluded and one vote per allottee.
The email arrives on a weekday evening. The developer of a half-built tower in east Bengaluru writes that it has signed an arrangement with a larger company that will complete the project. A consent form is attached. Allottees are asked to sign and return it within two weeks. Some neighbours sign at once, relieved that someone bigger is stepping in. Others are unsure what they are agreeing to, and whether they have a choice at all.
They do. Under Section 15 of the Real Estate (Regulation and Development) Act, 2016, a promoter's majority rights and liabilities in a project cannot simply be handed to a new company. The allottees' consent is one of two gates the transfer must pass. This guide uses MoHUA's official FAQ on the Act to explain how that consent works, how votes are counted, and what a buyer should ask before signing.
The short answer. Section 15 bars a promoter from transferring or assigning its majority rights and liabilities in a project to a third party without the prior written consent of two-thirds of the allottees and of the Regulatory Authority. Flats held by the promoter are excluded from the count, and each allottee has one vote no matter how many flats they own. The trade-off: consenting can bring in a stronger developer and restart a stalled site, but it also means accepting a new counterparty for your agreement, so the decision deserves the same diligence you gave the original purchase.
What does Section 15 require before a project changes hands?
MoHUA's Frequently Asked Questions on the Real Estate (Regulation and Development) Act, 2016 answers this directly. It states that under Section 15 the promoter cannot transfer or assign his majority rights and liabilities in the project to a third party without obtaining the prior written consent of two-thirds of the allottees and the Regulatory Authority.
Three words carry the weight. Prior means before the transfer, not as a formality after the deal is done. Written means a signed record, not a show of hands at a meeting. And the two consents are cumulative: two-thirds of allottees and the Authority. Allottee consent without the Authority, or the Authority's approval without the allottees, is not enough on the FAQ's description.
The provision targets majority rights and liabilities. A buyer reading a consent form should therefore check whether what is being proposed is in substance a handover of the project, even if the paperwork calls it a development arrangement, a joint venture or a completion agreement.
If you learn that a new company has already taken over site work without any consent having been sought from allottees, write to the promoter and ask for the record of the two consents. The FAQ notes that Section 31 allows an aggrieved person to file a complaint with the Authority or the Adjudicating Officer for violations of the Act, so a documented question now keeps that option open later.
How are the two-thirds counted?
The FAQ sets two counting rules. First, for arriving at the number of two-thirds of allottees, the number of apartments held by the promoter is excluded. A developer cannot use its own unsold inventory to reach the threshold.
Second, irrespective of the number of apartments held by an allottee, that allottee is entitled to only one vote. A buyer who owns five flats in the tower has the same single vote as a buyer who owns one. That stops a few large holders from deciding the matter for everyone else.
The same two rules appear in the FAQ's description of Section 14, which requires two-thirds of allottees to approve major changes to sanctioned plans or project specifications. Our earlier piece on plan changes and project transfers for Mumbai buyers covers both sections together.
| Question about the transfer | What MoHUA's FAQ says | Why it matters to a buyer | What to look for in the consent form | What to keep on file |
|---|---|---|---|---|
| Who must agree? | Two-thirds of allottees and the Regulatory Authority | Your signature is part of a required consent | Whether the Authority's approval is also being sought | A copy of the form you signed or declined |
| When must consent be given? | Prior written consent | A transfer completed before consent does not meet the description | The date of any underlying agreement between the companies | The covering email and its date |
| Are builder-held flats counted? | No, apartments held by the promoter are excluded | The threshold is reached by buyers alone | How the promoter will count responses | Any tally the promoter shares |
| Do multiple flats give more votes? | No, one vote per allottee irrespective of apartments held | Large investors cannot outvote other buyers | Whether the form asks for one signature per allottee | Your allotment letter and agreement |
| What is transferred? | Majority rights and liabilities in the project | Your counterparty may change | Who will be promoter and who carries the liabilities | The proposed revised schedule |
What should you ask before you sign?
Start with the incoming company. Ask for its name, its registration details and the projects it has delivered. Search the Karnataka RERA portal for its other projects and read their status. A transfer is only as good as the developer taking over.
Next, ask how your own position carries over. Will your registered agreement continue on the same terms? Who receives your future payments? What happens to the money you have already paid, and to any delay you have already suffered? Ask for the answers in writing, and read the consent form for anything that waives a right you already hold.
Finally, ask about the timeline. A transfer is often proposed when the original schedule has slipped. Ask for a revised completion date and whether the project's details on the RERA portal will be updated to show the new promoter and schedule. The FAQ notes that under Section 11 the promoter must update project information on the Authority's website, including on a quarterly basis.
Does consenting give up your right to interest for delay?
Consent to a transfer and a claim for delay are different things, and you should not let one quietly cancel the other. The FAQ describes Section 18 as giving an allottee whose possession is delayed the right to withdraw with a full refund plus interest and compensation, or to stay and receive interest for every month of delay until possession.
Whether a particular consent form affects those rights depends on its wording. If the form contains language about waiving claims, settling past delay or accepting a new date without interest, treat it as a separate decision from approving the new developer. You can ask for those clauses to be removed, or record in writing that your consent to the transfer does not waive any accrued claim. Our guide to how RERA interest and compensation are measured explains what those claims involve.
What if the project is revoked rather than transferred?
A transfer is a negotiated route. Revocation is the regulator's route. The FAQ explains that under Section 7 the Authority can revoke a project's registration for specified violations, but that revocation is envisaged as a last resort and only after a reasonable opportunity of being heard.
If a project is revoked, the FAQ says that under Section 8 the Authority, in consultation with the appropriate Government, may arrange for the remaining development works to be carried out by the competent authority, by the association of allottees or in any other manner it decides. In that scenario, the association of allottees has the first right of refusal for carrying out the remaining works.
For buyers in a struggling project, the two routes are worth comparing. A Section 15 transfer depends on a willing incoming developer and your consent. A Section 8 route follows revocation and puts the allottees' association in a central position. Neither is automatically better.
How should a Bengaluru allottee respond to a transfer proposal?
Treat the proposal as a decision, not a formality. Whether your project is a large township in Whitefield, such as Brigade Kadugodi, or a single tower elsewhere, the steps below apply.
- Note the date you received the proposal and keep the covering email and attachments.
- Identify the incoming developer and check its other projects on the Karnataka RERA portal.
- Ask whether the Regulatory Authority's consent is being sought, since Section 15 needs both consents.
- Confirm that promoter-held flats are excluded from the count and that each allottee has one vote.
- Read the form for any waiver of delay interest or other accrued claims, and strike or qualify it if needed.
- Ask in writing how your agreement, payments and possession date carry over.
- Coordinate with other allottees or the association before responding, and keep a copy of what you sign.
Frequently asked questions
Can a builder transfer a RERA project to another developer without buyers agreeing?
MoHUA's RERA FAQ says that under Section 15 the promoter cannot transfer or assign its majority rights and liabilities in the project to a third party without obtaining the prior written consent of two-thirds of the allottees and of the Regulatory Authority. Both consents are needed, and both come before the transfer, not after.
How are the two-thirds of allottees counted?
According to MoHUA's FAQ, apartments held by the promoter are excluded when arriving at the two-thirds figure, and each allottee gets only one vote irrespective of the number of apartments held. So a builder cannot count its own unsold flats, and an investor holding several units does not get several votes.
What happens if a project is revoked instead of transferred?
MoHUA's FAQ says revocation under Section 7 is a last resort after a reasonable opportunity of being heard. Under Section 8, the Authority, in consultation with the appropriate Government, may arrange for the remaining works through the competent authority, the association of allottees or otherwise, and the association has the first right of refusal.
What should I check before consenting to a project transfer?
Ask for the identity and track record of the incoming developer, a revised completion schedule, how your agreement and payments carry over, and whether the incoming company will be shown as promoter on the RERA portal. Read the consent form carefully and keep a copy. Your vote is one of the safeguards Section 15 gives you.
Last updated 2026-11-13. PropNewz Team.
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