AHMEDABAD: The Gujarat Real Estate Regulatory Authority (GujRERA) has intensified its review process for developers applying for new project registrations. Approximately 50% of the reviewed applications have been linked to promoters or partners with unresolved complaints from past projects.
The authority’s more stringent measures necessitate that developers address outstanding complaints, unpaid fines, and any other dues before initiating new project registrations. In the last 15 days, about 10 new projects received provisional registrations, with directives for promoters to resolve outstanding issues within set deadlines prior to attaining full compliance, according to sources.
Officials noted that this heightened scrutiny includes both complaints lodged by homebuyers and cases initiated by the authority itself.
“Recently, we processed applications from two builders who still owed penalties of Rs 70,000 and Rs 1 lakh for excess withdrawals on their prior projects. During our review, we flagged these pending dues, which were subsequently cleared, allowing their new projects to be registered,” remarked a GujRERA official.
The authority has warned that developers with serious violations could face stricter penalties. New registrations may be denied for unresolved complaints concerning delayed possession or pending refunds until those matters are fully settled.
As part of this new framework, GujRERA will connect a promoter’s past records with the registration data for new projects. Additionally, the regulator plans to publish pending complaints from prior projects on its public portal, enabling potential homebuyers to evaluate a promoter’s track record before making investment decisions.
This requirement extends beyond just the primary promoter, covering partners involved in unresolved issues in other projects. The authority is currently compiling and validating past project records using PAN-based verifications of promoters and project entities.
Internal tracking of promoter histories has already commenced, with the public portal feature anticipated to launch in the coming months.
This initiative aims to bridge a critical disclosure gap in the real estate industry, especially among smaller and less organized developers who often operate distinct projects via separate LLPs or partnerships. This setup has occasionally allowed promoters to obfuscate details of problematic previous projects by altering project entities or partner configurations.
A senior GujRERA official stated that the updated system will ensure these connections are consistently reflected. “If any partner has a problematic history, it will still appear in the new project’s registration details,” the official emphasized. “Accountability and transparency are crucial, and we aim to send a clear message that complaints require serious attention.”
