In a major regulatory move, the Gujarat Real Estate Regulatory Authority (GujRERA) has frozen over 1,000 bank accounts linked to real estate projects across the state. This action was prompted by developers' failure to comply with the Quarter-End (QE) requirements, which mandate updating project completion status with GujRERA within the specified deadline or seeking an extension. As a result, GujRERA has cancelled the registration of these projects, prohibiting developers from advertising, selling remaining units, or seeking credit. The impact will be particularly felt in major cities like Ahmedabad, Vadodara, Surat, and Rajkot. While some of the affected projects are already completed, the lack of Building Use (BU) permission has prevented developers from fulfilling the QE compliance. This crackdown underscores GujRERA's commitment to ensuring transparency and accountability in the state's real estate sector.
In a major blow to developers across Gujarat, the Gujarat Real Estate Regulatory Authority (GujRERA) has frozen over 1,000 bank accounts linked to real estate projects in the state. This action was taken due to non-compliance issues, where developers failed to meet the Quarter-End (QE) compliance requirements.
Specifically, the developers of these projects did not update the project completion status with GujRERA within the specified deadline, nor did they seek an extension for the same. As a result, GujRERA has cancelled the registration of all such projects.
The impact of this move will be felt by developers in major cities like Ahmedabad, Vadodara, Surat, and Rajkot. The freezing of the 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.
The majority of these affected projects were launched in 2018-19 and had a projected completion date of the first half of 2024. GujRERA has also informed the State Level Bankers' Committee (SLBC) - Gujarat to freeze the RERA-registered bank accounts of these projects.
According to a top GujRERA official, 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.
The official stated that GujRERA found that developers had not completed the compliance for at least 1,000 projects, nor had they applied for extensions. Consequently, the authority has taken the step of cancelling the registration of all such projects.
Interestingly, some of these 1,000+ 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 1,000 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. As the developers navigate the consequences of this crackdown, it remains to be seen how they will adapt and ensure compliance with the QE requirements going forward, ultimately benefiting both the industry and the homebuyers.
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