Agreement to lease Promoter includes Lessor Bombay High Court Order
Real Estate developers have been trying to avoid the applicability of Real Estate Regulatory Act (RERA) on their projects and transaction. One of the more common practice followed by real estate developers is to structure the agreement of sale transaction in the form of agreement of lease with perpetual right to the Lessee and his/her successors, right to transfer the lease etc.
The Developers have contended that the term Promoter and allottee as defined under RERA do not include a Lessor and a Lessee and therefore the lease transactions are outside the purview of jurisdiction of Real Estate Regulatory Authority.
The aforesaid preposition has been challenged before the Maharashtra Real Estate Regulatory Appellate Authority and Bombay High Court. The Bombay high court has confirmed applicability of RERA on sale via agreement to lease.