AHMEDABAD: Despite receiving an extension, only 79% of developers have submitted their annual financial reports for 2024-25, as reported by sources from GujRERA (Gujarat Real Estate Regulatory Authority).
The authority has put in place a penalty system for developers who fail to adhere to the regulations. Historically, about 80% of developers complied with submitting this Form-5. GujRERA also actively pursues action against non-compliant developers.
Each promoter is obligated to have their accounts audited within six months after the financial year ends for every registered project and must upload the annual report in Form-5 to their GujRERA webpage.
This year, for the 2024-25 period, out of 7,930 projects, 6,180 submitted Form-5, with the deadline extended until the end of October.
The submission process is strictly regulated by set timelines. If a promoter does not submit Form-5 within the given timeframe, access to submit Form-5 for that project is disabled by GujRERA. Once locked, further filings for that financial year are not permitted.
“Non-compliance could result in suo moto proceedings against the defaulting developer under sections 60, 61, and 63 of the Act,” stated an official. To improve regulatory compliance and streamline business operations, the authority has launched the Voluntary Compliance Scheme 2025 for resubmitting the annual audit report for all previously defaulted financial years, for a one-time processing fee.
“Initially, this scheme was set to conclude on March 31, 2025, but to enhance compliance, the authority extended the deadline to April 30, 2025, and then to July 31, 2025,” the official added. The authority intends to impose daily penalties relative to project size for non-compliance and may even freeze the bank accounts of the delinquent developers, officials disclosed.
