GujRERA Takes Action Against Shivalik Group for Pre-Registration Marketing

A bench of the Gujarat Real Estate Regulatory Authority (GujRERA) has referred a case involving the 32-storey project Shivalik Wave to its secretary for appropriate legal action against the project’s promoters. The referral concerns allegations of marketing and booking units before the project was registered with RERA.nnThe complaint was filed by Devarshi Parikh, a resident of Gandhinagar, against promoters Chitrak Shah and Anil Desai. Parikh alleged that the promoters marketed the project—located at Final Plot No. 106 of TP Scheme No. 63 in Khoraj village near Vaishnodevi Circle—before obtaining RERA registration. He also claimed that he was promised a 1% brokerage fee, amounting to Rs 3.5 crore, for providing details of the 13,500-square-yard plot to the Shivalik Group. However, the amount was never paid.nnParikh requested that RERA direct the promoters to pay the brokerage and take action for alleged pre-registration marketing.nnIn response, Shivalik’s representative argued that Parikh is neither an allottee nor a real estate agent but a private individual. Therefore, the complaint regarding unpaid brokerage does not fall under RERA’s jurisdiction, as per Section 31 of the RERA Act, which allows only an “aggrieved person” to file a complaint.nnRERA framed two key issues. The authority ruled that since Parikh is not an allottee or a registered agent, the matter is a civil dispute and outside its jurisdiction. The other issue pertains to pre-registration marketing. RERA reviewed photographs submitted by Parikh showing promotional material with the Shivalik Group’s name and contact number but lacking a RERA registration number or website. Since the project was not registered at the time of marketing, GUJRERA found this to be a violation and referred the matter to its secretary for further legal action.nnThe Gujarat Real Estate Regulatory Authority (GujRERA) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to protect the interests of homebuyers and promote transparency, accountability, and efficiency in the real estate sector. This case highlights the importance of compliance with RERA regulations to ensure fair practices in the industry.