When a New Builder Takes Over a Project: RERA Section 15 Rights of Flat Buyers in Bangalore
A project that changes hands midway is a common worry for buyers of under-construction flats in Bangalore. The signboard carries a new name, the site office has new staff, and the buyer wonders whether the booking still holds. This guide explains what the Real Estate (Regulation and Development) Act, 2016 (RERA) requires when a new builder takes over, and what a buyer should collect in writing.
How a Project Changes Hands
A new builder can come into a registered project by more than one route, and the route decides which rules apply. The buyer's first job is to find out which of these has happened.
- A voluntary transfer, where the original promoter assigns the project to another company under section 15 of RERA
- A takeover after the registration lapses or is revoked, arranged by the Authority under section 8
- A change through insolvency, where a resolution plan approved under the Insolvency and Bankruptcy Code brings in a new company
- A change inside the same company, such as new shareholders or a new brand name, with the promoter entity unchanged
The first two routes are the ones RERA itself governs, and this article deals mainly with them. In Karnataka the Authority is the Karnataka Real Estate Regulatory Authority, usually called K-RERA.
What Section 15 Requires Before a Transfer
Section 15(1) bars a promoter from transferring or assigning its majority rights and liabilities in a project to a third party unless two conditions are met. Both must be in place before the transfer, and one without the other is not enough.
- Prior written consent of two-thirds of the allottees, with the promoter's own units left out of the count
- Prior written approval of the Authority
The Act also explains how allottees are counted. A buyer who has booked several flats, in one name or in the names of family members or related companies, is counted as one allottee. This stops a single large investor, or a group close to the promoter, from supplying the consent on its own.
The same section protects existing bookings. A transfer made with consent and approval does not affect any allotment or sale already made by the outgoing promoter. The buyer's flat, floor and agreed price carry over as they are.
What the Incoming Builder Takes On
Section 15(2) places the incoming promoter in the position of the old one. The new company must comply with every pending obligation under the Act and the rules. It must also meet the pending obligations in the agreements for sale signed by the earlier promoter.
The proviso to that sub-section matters most to a buyer who is already waiting. A transfer does not result in any extension of time for the incoming promoter to complete the project. If the new builder misses the committed date, it faces the consequences of delay that the Act and the rules lay down.
In practice this means the possession date in the agreement for sale stays the reference date. A change of builder does not reset the clock on interest for delay or on the option of a refund under section 18. Payments made to the first promoter also count in full against the price.
When the Authority Arranges the Takeover
Section 8 covers a different situation. When a project's registration lapses or is revoked, the Authority consults the State Government and decides how the remaining work will be carried out. The work may go to the competent authority, to the association of allottees or to another agency, and the association has the first right of refusal.
A K-RERA order on a Bangalore project shows how this works for an individual buyer. The Authority had approved Sohan Realty's takeover of the project earlier known as Manyam Skypark, now Sohan Skypark, in January 2026 under section 8. A buyer who held a 2020 agreement with the earlier developer was then refused access to her flat, on the ground that her payments had gone to that developer.
In complaint 00202/2025, K-RERA directed the new promoter to recognise her as the lawful allottee and to give her access and possession. The Authority reasoned that a company which steps in as promoter carries the duties in section 11(4)(a) and cannot shift them back to the outgoing promoter. The order was widely reported in June 2026.
What Stays and What Needs Watching
The legal position of the buyer stays intact, while the practical details are where changes are attempted. The table below separates the two.
| Item | Position in law | What to watch |
|---|---|---|
| Allotment | Unaffected by the transfer | Requests to sign a fresh allotment letter or accept a different unit |
| Price and payments | Agreed price and amounts already paid stand | New demands described as takeover, revival or revision charges |
| Possession date | The transfer gives the new builder no extra time | Supplementary agreements that record a later date |
| Plans and specifications | Changes need allottee consent under section 14 | Revised brochures, altered amenities or added floors |
| Home loan | The loan and the tripartite agreement continue | The bank's approval of the project under the new promoter |
A supplementary agreement deserves the closest reading. Signing one that records a new possession date or a waiver of delay interest can give away rights that the Act had preserved. A buyer is entitled to refuse terms that are worse than the registered agreement for sale.
Steps for a Buyer After a Takeover
A written record is the buyer's main protection once the promoter changes. These steps are worth taking in the first few weeks.
- Open the project on the K-RERA portal and note the promoter name, the registration number and the completion date now on record
- Ask the new promoter in writing for a copy of the Authority's approval of the transfer or takeover
- Ask whether allottee consent was collected, and how the two-thirds count was reached
- Obtain a letter confirming the allotment, the unit number, the carpet area, the price and every payment made so far
- Compare any new specification sheet with the schedule in the agreement for sale, line by line
- Inform the home loan bank and ask whether its disbursements will continue to the new promoter's project account
- Pay further instalments only into the project's designated bank account, against a receipt in the new promoter's name
Acting with other buyers helps at every step. An association of allottees can ask for the transfer documents once, negotiate once and approach K-RERA as a group. Where a buyer was never asked for consent and the portal carries no approval, a complaint under section 31 is the route to test the transfer.
Buying Into a Project After the Change
A new buyer looking at a project that has already changed hands should read the portal entry before the brochure. The entry lists the current promoter, any extension of registration, the quarterly progress updates and complaints filed against the project. A takeover by a stronger developer can revive a stalled site, and the facts on the portal tell whether work has resumed.
The price also needs a second look in such projects. Earlier buyers hold agreements at older prices, while new sales are at current rates, so the cost sheet should be read with care. Our advisory team can help compare the project with other registered options in the same locality.
