AHMEDABAD: The Gujarat Real Estate Regulatory Authority (GujRERA) has reached out to the state urban development department (UDD), seeking assistance in completing the long-delayed World Trade Centre (WTC) project at GIFT City, where numerous investor funds are currently tied up.
Sources indicate that this call for intervention follows the arrest of the project’s promoter by the Enforcement Directorate (ED) over allegations of real estate fraud. The association of allotters has expressed that they are unable to proceed with the project.
Officials have noted that the project, which began in 2014-15, was intended to feature four towers. While two have been completed, construction on the remaining two halted unexpectedly. Many buyers have filed complaints with GujRERA against the WTC Noida Development Company. However, the firm’s ability to finish the project seems uncertain following the arrest of its promoter, Ashish Bhalla, linked to real estate fraud. To safeguard buyer interests, GujRERA has decided to contact the UDD regarding possible completion plans,” an official stated.
The situation has been plagued by numerous controversies and RERA complaints. Previously, the GIFT City authorities canceled the development agreement with WTC for its B and C towers. Although the allotees’ association could step in to finish the project under the law, they have communicated to officials that they are not in a position to undertake this responsibility, as per sources.
This marks the first instance of GujRERA seeking UDD’s intervention to address a stalled project. “GIFT City is tentatively open to completing the project, and we are considering various options,” a source revealed.
GujRERA directs banks regarding project loan approvals
GujRERA has rolled out new guidelines for banks to enhance scrutiny when granting loans for real estate projects. According to these regulations, banks are prohibited from approving project loans for units where a sale agreement or deed has been executed with buyers prior to signing the mortgage deed.
“Banks must ensure that mortgage creation is promptly recorded with relevant revenue authorities after the execution of the mortgage deed. They should exercise caution when financing projects where the promoter has previously obtained a loan from another bank,” the regulations state.
