svardhimaan@gmailcom Search for Articles Q ‘CONTRIBUTOR RESOLUT PARTNERS ARTICLE India: Investor Or Developer? Real Estate Regulator (RERA) Classifies Real Estate Fund As A Promoter 07 Noveber 2022 by sna Sen, Ruch Sinha and Prvank pads In arecent order, Maharashtra’ real estate regulator - Maha RERA qualified a private equity fund holding a minority equity stake as a ‘promoter under the Real Estate (Regulation and Development) Act (RERA) basis certain veto rights, which are quite common in the sector. The order, apparently elven on equitable grounds to protect the primacy of homebuyer interests, has Industry wide implications, Real estate funds could now be Jt lable with the developers to share the financial obligations imposed under RERA, The order has Selectively pierced the carporate bringing to fare questions relating to carporate personality of te entity. The ‘order could impact private equity and private credit funds investing in developmental estate In this analysis, we examine (A) the terms ofthe investment which were read ta hold thatthe investor is 2 promoter under RERA: (E) the potential justification for the Regulators interpretation: (C) the impact on Various stakeholders and on LP-GP relationships asa result ofthis Order, ane (0) peculiarities of private ‘equity investments and established standards of global deal makingin real estate that don't seer to have been appreciated Download Pat View Contents The content ofthis article is intended to provide a general guide to the subject matter. Specialist advice “should be sought abaut your specif circumstances. AUTHOR(S) lana sen uchir Sinha Priyank Kapadia e 8 e sabe | Pevaey statement