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The Telangana RERA Appellate Tribunal, led by Justice A. Santhosh Reddy, has ruled that landowners in joint development agreements (JDAs) are to be treated as co-promoters, not allottees or consumers, under the RERA Act. The judgment arose from appeals by landowners of the 'Sanali Pinnacle' project in Hyderabad, who sought higher penalties against the developer. The Tribunal held that since landowners share both profits and risks, they cannot seek buyer-level protection under RERA. It also clarified that a site board or a project listing without pricing details does not constitute advertising. By overturning the earlier RERA order, the ruling brings legal clarity to the roles of landowners and developers in JDAs.
The Telangana RERA Appellate Tribunal, comprising Chairman Justice A. Santhosh Reddy, Judicial Member P. Pradeep Kumar Reddy, and Administrative Member Chitra Ramachandran, ruled that landowners in JDAs are to be recognised as co-promoters rather than allottees or consumers under RERA. The decision came in response to appeals filed by landowners of the proposed 'Sanali Pinnacle' project in Shaikpet, Hyderabad, who had sought an increased penalty against the developer that had previously been imposed under Section 59 of the Act. Advertisement
The tribunal observed that the development agreement-cum-irrevocable power of attorney executed between the landowners and developer placed them within the promoter category. Since landowners in JDAs participate in development and share both profit and risk, they cannot be considered aggrieved persons eligible to seek redressal under RERA.
On the issue of advertising, the tribunal clarified that a display board at the project site merely showing the developer's name does not amount to advertising or promotion prior to registration. Similarly, the listing of a project under an 'ongoing projects' section on a developer's website without any pricing, location, or promotional details-cannot be deemed a violation of RERA's advertising regulations.
Setting aside the earlier RERA authority's order and refunding the penalty to the developer, the tribunal effectively resolved a long-standing legal ambiguity regarding the regulatory status of landowners in JDAs. Legal experts suggested that this clarification brings much-needed certainty to the interpretation of promoter and allottee definitions under RERA.
The Telangana RERA Appellate Tribunal's ruling has brought clarity to the treatment of landowners in joint development agreements, defining them as co-promoters rather than allottees under RERA. This distinction removes the possibility of landowners seeking buyer-level protection for disputes arising in such projects. The decision further reinforces that limited project visibility before registration does not breach advertising rules. Overall, the ruling strengthens compliance clarity for both developers and landowners engaged in joint ventures.
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