New Builder Taking Over Your Project? RERA Section 15 and the Two-Thirds Consent Rule

The letter arrives on a different letterhead. A Bengaluru buyer, three years into an under construction flat on the northern side of the city, reads that the original developer intends to hand the project to another company, which will finish the towers and honour the bookings. At the end is a request: please sign the attached consent form.

That form matters more than it looks. The Real Estate (Regulation and Development) Act, 2016 does not let a promoter pass a registered project to someone else on its own say. Section 15 requires the buyers' written consent, by a two-thirds majority, and the regulator's approval, and it protects the sales already made and the deadlines already promised. This guide reads Section 15 from the Act and explains what to check before you sign.

The short answer. Under Section 15(1) of the RERA Act, a promoter shall not transfer or assign its majority rights and liabilities in a real estate project to a third party without the prior written consent of two-thirds of the allottees, excluding the promoter, and the prior written approval of the Authority. Each allottee counts once, however many units they or their family have booked. The transfer does not affect allotments or sales already made, and under Section 15(2) the new promoter must meet all pending obligations without any extension of time. The trade-off: a takeover can rescue a stalled project, but your consent is one of the few points of leverage you have, so read the terms before you give it.

What does RERA Section 15 require before a project changes hands?

Section 15(1) of the Real Estate (Regulation and Development) Act, 2016 in its Gazette text says the promoter shall not transfer or assign its majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, except the promoter, and without the prior written approval of the Authority.

Both conditions apply, and both must come first. Consent from buyers alone is not enough, and approval from the Authority alone is not enough. The word "prior" in each case means the consent and approval come before the transfer, not after it has been agreed between the companies.

The section speaks of majority rights and liabilities. That is the trigger the Act names, so ask the promoter to say in writing whether a proposed arrangement transfers majority rights and liabilities.

How are the two-thirds counted?

The explanation to Section 15(1) sets the counting rule. An allottee, irrespective of the number of apartments or plots booked by them or in the name of their family, is considered as one allottee only. The same applies to companies, firms or associations of individuals, including units booked in the name of associated entities or related enterprises.

That rule stops a single large holder from outvoting everyone else. If one investor or connected group holds many flats in a Bengaluru project, it still counts as one allottee for the two-thirds calculation, and the promoter itself is excluded from the count.

The table below sets out the main elements of Section 15 and what each means for you.

What stays protected after a takeover?

The proviso to Section 15(1) says that a transfer or assignment shall not affect the allotment or sale of the apartments, plots or buildings in the project made by the erstwhile promoter. Your booking and your agreement for sale survive the change of hands.

Section 15(2) then binds the incoming company. On the transfer being permitted by the allottees and the Authority, the intending promoter is required to independently comply with all the pending obligations under the Act, rules and regulations, and with the pending obligations under the agreements for sale entered into by the earlier promoter with the allottees.

The proviso to Section 15(2) closes the most important gap. It says the permitted transfer shall not result in extension of time to the intending promoter to complete the project, and the new promoter must comply with all pending obligations of the earlier promoter. In case of default, the new promoter is liable to the consequences of breach or delay as provided under the Act. In plain terms, the possession date in your agreement for sale does not restart because a new company has taken over.

How does a takeover differ from revocation or insolvency?

A Section 15 transfer is a negotiated change of promoter, with buyers and the regulator agreeing in advance. It is different from two harder routes that can also change who finishes a project.

When a project's registration is revoked, Sections 7 and 8 let the Authority arrange for the remaining work, with the association of allottees given the first right of refusal. Our guide on extension, revocation and lapse of a RERA registration covers that route. When a developer enters insolvency, the Insolvency and Bankruptcy Code process applies instead, and our guide to what builder insolvency means for Bengaluru homebuyers explains how buyers take part in it.

Compared with those routes, a Section 15 transfer gives buyers a direct say before anything happens. That is the reason to treat the consent form as a decision, not a formality.

What if a project changes hands without consent?

If you learn that a different company has taken control of your project and no one asked for your consent, start by asking both companies, in writing, whether the change involved a transfer of majority rights and liabilities, and whether the Authority approved it. Ask for copies of the approval and of the consents relied on.

The Act gives you places to take the answer. Section 31(1) allows any aggrieved person to file a complaint with the Authority or the adjudicating officer for any violation or contravention of the Act or the rules and regulations. Section 61 says a promoter that contravenes provisions of the Act other than Sections 3 and 4 is liable to a penalty which may extend up to five percent of the estimated cost of the project, as determined by the Authority. And under Section 7(1)(a), a default in doing anything required by or under the Act is one of the grounds on which the Authority may revoke a project's registration.

None of these steps undoes your own rights. The protection in the proviso to Section 15(1) for existing allotments and sales, and the possession date in your agreement for sale, remain the reference points whichever company is building. Keep your agreement, receipts and every letter about the change in one dated file.

What should you check before signing a consent form?

Ask for the details in writing. Who is the incoming promoter, and what is its record on completed projects? What is the plan and schedule for finishing your tower, and does it match the possession date in your agreement for sale? How will the project account and existing approvals carry over?

Then check that the form itself respects the Act. It should not ask you to accept a later possession date, waive interest for past delay, or change your agreement terms as a condition of consent. Section 15(2) puts the pending obligations and the original timeline on the new promoter, so a form that tries to reset them deserves a careful second look, ideally with a lawyer.

Talk to other buyers too. Because two-thirds of allottees must consent, buyers acting together through an association can ask for clear commitments before signing. If you are comparing how different developers handle large projects, our review of Casagrand Promenade in Yelahanka is one example of the project information worth gathering.

Before you sign, run through this checklist:

1. Confirm the request is for a transfer of majority rights under Section 15.
2. Ask for the incoming promoter's name, record and completion plan in writing.
3. Compare the plan with the possession date in your agreement for sale.
4. Check the form does not change your agreement terms or timeline.
5. Ask whether the Authority's approval has been sought, and when.
6. Discuss the request with other buyers or your association before signing.
7. Keep a copy of the signed form and every letter about the transfer.

A new builder can be good news for a stalled project. Section 15 makes sure it arrives on terms the buyers and the regulator have accepted, with your booking and your dates intact.

What do Bengaluru buyers ask about a project changing hands under RERA?

Can a builder hand over a RERA project to another builder?

Only with conditions. Section 15(1) of the RERA Act says a promoter shall not transfer or assign its majority rights and liabilities in a project to a third party without prior written consent from two-thirds of allottees, excluding the promoter, and prior written approval of the Authority.

How are buyers counted for the two-thirds consent?

The explanation to Section 15(1) says each allottee counts as one, irrespective of the number of apartments or plots booked by them or their family. Companies, firms and associations also count once, including units booked through associated entities or related enterprises. The promoter is excluded from the count.

Does a new builder get more time to finish the project?

No. The proviso to Section 15(2) says a permitted transfer shall not result in extension of time to the intending promoter to complete the project. The new promoter must meet all pending obligations of the earlier promoter and is liable for breach or delay under the Act.

Is my booking still valid if the project is transferred?

Yes. The proviso to Section 15(1) says a transfer or assignment shall not affect the allotment or sale of apartments, plots or buildings made by the earlier promoter. Section 15(2) also binds the new promoter to the pending obligations under existing agreements for sale.

Last updated 2026-10-17. PropNewz Team.