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Gujarat RERA steps up scrutiny as half of new project applications involve developers with pending complaints

#Law & Policy#Infrastructure#India#Gujarat
Synopsis

• Gujarat Real Estate Regulatory Authority (GujRERA) has tightened scrutiny of new real estate project registrations after finding that nearly 50% of applications under review involve developers with pending complaints or regulatory proceedings.
• Developers seeking approval for new projects are now being asked to resolve outstanding complaints, penalties and other dues before fresh registrations are granted. In some cases, projects have received conditional approvals subject to compliance within stipulated timelines.
• The enhanced due diligence covers both complaints filed by homebuyers and suo motu proceedings initiated by the regulator, with the aim of improving accountability and protecting homebuyers.
• GujRERA is also preparing to display developers' complaint histories on its public portal, enabling prospective buyers to review a promoter's regulatory track record before investing in a project.

The Gujarat Real Estate Regulatory Authority (GujRERA) has intensified scrutiny of new real estate project registrations after discovering that nearly half of the applications currently under examination involve developers with pending complaints or unresolved regulatory issues. The move is aimed at strengthening consumer protection and ensuring greater accountability in the state's real estate sector. 
Under the revised approach, developers applying to register fresh projects are being required to clear pending complaints, unpaid penalties and other regulatory dues before receiving final approval. Officials have adopted a stricter review process to assess a promoter's compliance history, ensuring that unresolved issues from earlier developments are addressed before new projects enter the market. 
In recent weeks, several projects have reportedly been granted conditional registrations, with developers directed to resolve outstanding issues within prescribed timelines before achieving full regulatory compliance. The enhanced scrutiny extends not only to complaints lodged by homebuyers but also to suo motu cases initiated by GujRERA during its oversight of ongoing projects. 
As part of its transparency initiatives, GujRERA is also working on a mechanism to publish developers' complaint histories on its public portal. The proposed feature will allow prospective homebuyers to access information about a promoter's previous projects, pending complaints and regulatory record before making purchase decisions, enabling more informed investments. 
The regulator's latest measures reflect a broader effort to strengthen governance in Gujarat's real estate sector by linking a developer's past performance with eligibility for future project registrations. Industry observers believe the stricter compliance framework could encourage timely resolution of consumer grievances while improving confidence among homebuyers. 
The initiative also reinforces the objectives of the Real Estate (Regulation and Development) Act (RERA), which seeks to promote transparency, accountability and timely project delivery. By increasing regulatory oversight and making developer histories more accessible, GujRERA aims to create a more responsible and consumer-centric real estate market in the state.

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