Gujarat Real Estate Regulatory Authority Cracks Down on Non-Compliant Projects
GujRERA takes stringent action against over 1000 real estate projects in Gujarat that failed to meet compliance requirements.
Real EstateGujaratGujreraReraRegulatory ComplianceReal EstateJul 14, 2024
The majority of these projects, launched in 2018-19, were expected to be completed by the first half of 2024. However, the developers failed to comply with the QE requirements, leading to the cancellation of their registration. This move will have a significant impact on developers in major cities like Ahmedabad, Vadodara, Surat, and Rajkot.
The freezing of bank accounts prohibits these developers from advertising or selling the remaining units of their projects. Furthermore, they will also be unable to seek credit for these projects. GujRERA has informed the State Level Bankers' Committee (SLBC) - Gujarat to freeze the RERA-registered bank accounts of these projects.
A top GujRERA official stated that the authority is required to ensure that developers adhere to the project-completion compliance norms. This means the details of the project's completion must be updated with GujRERA as per the timeline mentioned during registration. If the project is not completed by the specified date, an extension must be sought from the authority.
Interestingly, some of these projects are already completed, and buyers have been granted possession. However, in many cases, the Building Use (BU) permission is still pending, preventing the developers from completing the QE compliance.
The freezing of over 1000 project-linked bank accounts by GujRERA sends a strong message to real estate developers in Gujarat that failure to comply with regulatory norms will not be tolerated. This decisive action taken by the authority is aimed at upholding the principles of transparency and consumer protection within the state's real estate industry.
Information The Gujarat Real Estate Regulatory Authority (GujRERA) is a statutory body established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Gujarat.
Gujarat Real Estate Regulatory Authority (GujRERA) is responsible for ensuring that real estate developers in Gujarat comply with the regulatory norms and adhere to the principles of transparency and consumer protection.
Frequently Asked Questions
What action has GujRERA taken against non-compliant real estate projects?
GujRERA has frozen more than 1000 bank accounts linked to non-compliant real estate projects in Gujarat.
Why were the bank accounts frozen?
The bank accounts were frozen due to the failure of developers to meet the Quarter-End (QE) compliance requirements.
What are the implications of the frozen bank accounts?
The developers will not be able to advertise or sell the remaining units of their projects, and they will also be unable to seek credit for these projects.
How many projects are affected by this move?
More than 1000 projects are affected by this move, with the majority of them launched in 2018-19.
What is the purpose of GujRERA's action?
The purpose of GujRERA's action is to uphold the principles of transparency and consumer protection within the state's real estate industry.
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