New Developer Cannot Deny Homebuyer Rights Merely Because Payments Were Made to Previous Promoter: Karnataka RERA
Case Title: Vijaya Shanthi Kanuru v. Manyam Estates Private Limited & Ors.
Complaint No.: 00202/2025
Authority: Karnataka Real Estate Regulatory Authority (K-RERA)
Citation: 2026 LLBiz RERA (KA) 108
The Karnataka Real Estate Regulatory Authority (K-RERA) has directed Sohan Realty, the developer that took over a Bengaluru residential project subsequently known as Sohan Skypark, to recognise Vijaya Shanthi Kanuru as the lawful allottee of Flat No. B-302 and provide her access and possession of the apartment.
Dispute Over Flat Allotment
The complaint arose from the allotment of Flat No. B-302 in the residential project. The allottee had made payments in connection with the flat to the project's earlier promoter, Manyam Estates Private Limited.
Following the subsequent takeover of the project by Sohan Realty, a dispute arose concerning the allottee's rights and whether the new promoter could refuse to recognise the payments and contractual rights arising from the earlier arrangement.
New Promoter Bound to Honour Existing Allottee Rights
K-RERA held that the subsequent promoter could not simply shift responsibility to the outgoing developer after taking over the project.
The Authority relied upon Section 8 of the RERA Act, which deals with the obligations of a promoter where a project is transferred or taken over, and Section 11(4)(a), which requires a promoter to honour the obligations arising from agreements and representations made to allottees.
The Authority observed:
“Once M/s Sohan Realty has stepped in as promoter under Section 8, it cannot refuse access nor shift responsibility onto the outgoing promoter.”
Right to Possession and Peaceful Enjoyment
K-RERA also relied upon Section 19(1) of the RERA Act, which recognises an allottee's right to possession and peaceful enjoyment of the apartment in accordance with the terms of the agreement.
The Authority held that the change in the identity of the promoter could not, by itself, extinguish the rights already acquired by the allottee.
Accordingly, the subsequent developer was required to recognise Kanuru's allotment and provide her access to the apartment.
Takeover of Project Does Not Extinguish Existing Rights
The ruling emphasises that a promoter taking over an existing real-estate project also assumes statutory responsibilities towards its existing allottees.
The incoming developer cannot avoid those obligations merely by contending that payments were made to the previous promoter. Any dispute concerning financial or contractual liabilities between the outgoing and incoming developers cannot, by itself, be used to defeat the allottee's established rights in the project.
K-RERA Directs Recognition of Allotment
K-RERA accordingly directed Sohan Realty to recognise Vijaya Shanthi Kanuru as the lawful allottee of Flat No. B-302 and to grant her access and possession of the apartment.
The decision reinforces the statutory protection available to homebuyers when a real-estate project changes hands during its development.
Key Takeaway
The decision underscores that a change in promoter does not automatically wipe out the rights of existing allottees. When a new promoter steps into the project, it must comply with the obligations imposed by RERA towards the existing homebuyers.
For allottees, the ruling reinforces the principle that their contractual and statutory rights travel with the project, rather than depending solely upon the identity of the developer who originally received their payments.
