In a major blow to developers across Gujarat, some 1,000+ real estate project-linked bank accounts have been frozen by Gujarat Real Estate Regulatory Authority (GujRERA), over non-compliance issues. Developers of these projects have failed to meet Quarter-End (QE) compliances on neither updating project completion status with GujRERA within the specified deadline nor seeking extension for the same.
The move will impact a number of developers in Ahmedabad, Vadodara, Surat and Rajkot as this action prohibits them from advertising or selling remaining units of the projects. Furthermore, the developers can’t even seek credit for these projects.
“A developer is required to adhere to project-completion compliance norms laid out by GujRERA. This means the details of project completion must be updated with GujRERA in accordance with the date mentioned at the time of registration. In case the developer fails to complete the project by the specified date, an extension needs to be sought from GujRERA. The authority learnt that developers have not completed compliance for at least 1,000 projects, or even applied for extensions,” said a top GujRERA official, requesting anonymity.
We have cancelled registration of all such projects,” said a top GujRERA official, requesting anonymity.
A majority of these projects were launched in 2018-19 which had promised a project completion date of the first half of 2024, according to the official.
GujRERA has also provided the details of each of these projects to the State Level Bankers’ Committee (SLBC) – Gujarat, urging them to freeze RERA-registered bank accounts of all these projects.
“This means developers of these projects cannot sell remaining units of the projects because they cannot get money in the registered bank account and also, as RERA registration is cancelled, they cannot advertise the project,” the official stated. Interestingly, these 1,000+ projects also include those which are already completed, and buyers have been granted possessions too. “However, in many such cases, the Building Use (BU) permission is pending and therefore, developers are not able to complete the QE compliance,” an industry source told TOI.