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Gujarat Real Estate Regulatory Authority (GujRERA) has taken strict action against real estate developers for violating rules related to RERA-mandated project bank accounts. The regulator imposed penalties totalling INR 3.5 crore after identifying irregularities in the handling of homebuyer funds. The violations included failure to deposit the required portion of collections into designated accounts and excess withdrawals beyond permitted limits. The action followed suo motu proceedings in eight cases, with fines ranging between INR 95 lakh and INR 2 crore. The move reflects tighter monitoring of financial compliance in real estate projects.
Gujarat RERA has imposed penalties totalling INR 3.5 crore on multiple real estate developers for violations linked to mandatory rules governing project-specific bank accounts meant for safeguarding homebuyer funds. Advertisement
The regulatory action was initiated after identifying non-compliance in the way developers managed funds collected from buyers. As per RERA norms, a fixed share of the money received from homebuyers must be deposited into designated project accounts, which are strictly meant for land acquisition and construction expenses. However, the review found deviations from these requirements in several cases.
The authority carried out suo motu proceedings in eight separate cases after detecting irregularities during scrutiny of financial records submitted by promoters. In these cases, penalties were imposed in the range of INR 95 lakh to INR 2 crore, depending on the severity of the violation, with the highest penalty being levied on a developer based in Surat.
Investigations revealed that certain developers either failed to deposit the mandated portion of homebuyer collections into RERA-registered accounts or withdrew funds beyond the limits allowed under regulations. These lapses were identified through detailed examination of project-wise financial statements and account disclosures.
Under RERA provisions, developers are required to maintain discipline in fund utilisation, ensuring that money is released from designated accounts only in proportion to construction progress. Such withdrawals must also be certified by qualified professionals, including engineers, architects, and chartered accountants, to ensure transparency and accountability in project execution.
The regulator observed that in multiple cases, these conditions were not properly followed, leading to concerns over fund diversion and non-compliant financial practices. The action has been taken as part of ongoing monitoring efforts to strengthen enforcement of RERA guidelines across the state.
Officials indicated that financial records of other projects are also under review, and further action may be initiated if additional violations are found during ongoing scrutiny.
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