Gujarat RERA Halts Over 1,000 Project-Linked Bank Accounts.

In a significant setback for developers throughout Gujarat, over 1,000 real estate project-linked bank accounts have been frozen by the Gujarat Real Estate Regulatory Authority (GujRERA) due to non-compliance issues.

Developers of these projects failed to meet Quarter-End (QE) compliances by not updating the project completion status with GujRERA within the specified deadline or seeking an extension.

This action will affect numerous developers in Ahmedabad, Vadodara, Surat, and Rajkot, as it prohibits them from advertising or selling the remaining units of these projects. Moreover, the developers cannot 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 by 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 learned 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 canceled the registration of all such projects,” added the official. Most of these projects were launched in 2018-19 and had promised a project completion date in the first half of 2024, according to the official.

GujRERA has also provided 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 the remaining units because they cannot receive money in the registered bank account. Additionally, as RERA registration is canceled, they cannot advertise the project,” the official stated.

Interestingly, these 1,000+ projects also include those that are already completed, and buyers have been granted possession. “However, in many such cases, the Building Use (BU) permission is pending, and therefore, developers are not able to complete the QE compliance.