The Gujarat Real Estate Regulatory Authority (GUJRERA) has issued a stern warning to builders across the state. It has named 615 real estate projects whose builders have failed to pay fines for violating the Real Estate (Regulation and Development) Act, known as RERA. This move represents a significant effort to enforce compliance in the real estate sector in Gujarat.
The list of defaulters is diverse, with the highest number of cases from Vadodara, which has 213 projects. Ahmedabad follows with 107, while Surat has 72. Other cities like Rajkot, Gandhinagar, Bhavnagar, and Anand also have defaulters. This crackdown aims to ensure that builders adhere to the rules set out by GUJRERA.
GUJRERA has made it clear that if the fines are not paid quickly, it will take legal action. This could include recovery proceedings under the Gujarat Land Revenue Code. In such cases, the dues may be treated as government revenue. Additionally, properties belonging to defaulters could face attachment, and their names will be published in the media, damaging their reputations.
The authority has also advised builders who have already settled their fines to provide proof. This step is necessary for them to be removed from the defaulters list. Many builders have ignored repeated reminders from GUJRERA, despite having been given ample time to comply with the regulations.
The RERA Act, which came into effect on May 1, 2017, gives GUJRERA the power to impose penalties on builders for various violations. These include failing to register projects, not submitting required quarterly updates, or disobeying orders from the authority. Fines can range from ₹15,000 to ₹20,000, depending on the severity of the violation.
In a related move, GUJRERA has also frozen more than 1,000 bank accounts linked to non-compliant real estate projects. This action particularly affects developers who have not provided timely updates on project completion or have failed to seek necessary extensions. The freezing of these accounts is a drastic measure that significantly impacts developers’ ability to operate.
These accounts are crucial for financial transactions, including payments from homebuyers and managing project expenses. With accounts frozen, builders cannot advertise or sell their remaining units, creating severe financial strain.
Most affected projects were launched between 2018 and 2019, with expected completion dates in the first half of 2024. GUJRERA has also cancelled the registrations of all non-compliant projects, sending a clear message about the importance of following the rules.
Interestingly, some projects that are already completed are also on the list. In these cases, the builders are pending Building Use (BU) permissions, which stops them from fulfilling compliance requirements. This situation complicates the enforcement of regulations.
GUJRERA has shared detailed information about these projects with the State Level Bankers’ Committee (SLBC) in Gujarat. They have requested SLBC to freeze all RERA-registered bank accounts linked to these projects. This collaboration shows a strong approach to ensure compliance and accountability in the real estate sector.
For homebuyers, GUJRERA’s actions provide reassurance that regulatory authorities are actively monitoring the market. It helps maintain trust and ensures that their investments are protected. The freezing of bank accounts serves as a deterrent, reminding developers of the importance of adhering to compliance norms.
As the situation develops, the real estate sector in Gujarat must adapt to these stringent regulations. Developers will need to prioritize compliance to avoid similar penalties in the future. For GUJRERA, ongoing monitoring and enforcement will be crucial to maintain the integrity of the sector. This decisive action marks a significant step towards a more transparent and accountable real estate market in Gujarat.
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