Construction

Functions and duties of promoters are clearly defined under RERA act:
1) The Act mandates that a promoter shall deposit 70% of the amount realised from the allottees, from time to time, in a separate account to be maintained in a scheduled bank. This is intended to cover the cost of construction and the land cost and the amount deposited shall be used only for the concerned project.
2) Withdrawal can only be made after it is certified by an engineer, an architect and chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project.
3) The promoter is also required to get his accounts audited within six months after the end of every financial year by a practicing chartered accountant.
He will also have to get verified during the audit that:
i) The amounts collected for a particular project have been utilised for the project
ii) The withdrawal has been in compliance with the proportion to the percentage of completion of the project.

Obligations of promoter are clearly defined under this act.
Restriction on transfer and assignment: The promoter shall not transfer or assign his majority rights and liabilities in respect of a project to a third party without obtaining prior written consent from two-thirds of the allottees, except the promoter and without the prior written approval of the Regulatory Authority.
Further details, please refer the link.

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act came into force from 1 May 2016. The key highlights of the act are:
1) Mandatory to register with Real Estate Regulatory Authority (RERA) for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments for launching a project, in order to provide greater transparency in project-marketing and execution.
2) Registration of Real estate agents who facilitate selling or purchase of properties with RERA
3) Establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover.
4) Upon receipt of an application by the promoter, the Regulator Authority shall within a period of 30 days, grant or reject the registration. If the Regulatory Authority fails to grant or reject the application of the promoter within the period of 30 days, then the project shall be deemed to have been registered.
5) The registration, if granted, will be valid until the period of completion of the project as committed by the promoter to the Regulatory Authority. Extension by one year only due to force majeure and on payment of fee.
 

Following are the qualifications for Sponsor(s) of raising Infrastructure Investment Trusts (InvITs)
1) Net worth of at least $ 15.38 mn in case of body corporate or a company or net intangible assets of $ 15.38 mn in case of a Limited Liability Partnership (LLP).
2) Minimum experience of at least five years and has completed at least two projects.
For further details, please refer to this link.

Following are the qualifications for Sponsor(s) of raising Real Estate Investment Trusts (REITs):
1) Minimum holding of 5% of total units of REIT with a maximum of 3 sponsors.
2) Net worth of at least $ 15.385 mn on consolidated basis and $ 3.077 mn on individual basis.
3) Minimum experience of 5 years in real estate industry for each sponsor and where sponsor is a developer, at least 2 projects of sponsor should be completed.
For further details, please refer to this link.