AHMEDABAD: In an unprecedented decision in Gujarat, a committee led by the chief secretary has resolved to transfer a stalled real estate project to the allottees’ association for its completion. This decision involves the World Trade Center (WTC) in GIFT City, where Towers B and C remain unfinished following the arrest of the project’s original promoter by the Enforcement Directorate (ED) over a fraud case.
A group of allottees from Tower B is currently forming an association, while those from Tower C have already established one and are in the process of registering a society, according to sources.
The handover process will hinge on the allottees’ willingness to fund and appoint contractors for the project’s completion. If they agree, GIFT City plans to reinstate the project lease, currently canceled. A new promoter will also be listed on the project’s registration certificate with the Gujarat Real Estate Regulatory Authority (GujRERA).
This decision follows a request from GujRERA to the state government under Section 8 of the Real Estate (Regulation and Development) Act, 2016, seeking guidance on finishing the outstanding work on the two towers after missing deadlines. A meeting was held last September with key stakeholders, including then chief secretary Pankaj Joshi, GujRERA chairperson Anita Karwal, and others, resulting in this recent decision.
The project was initiated by WTC Noida Development Company Pvt Ltd and encompasses Towers A, B, C, and D. Towers A, B, and D are registered with GujRERA as ongoing projects, with Towers A and D completed, and GIFT City authorities issuing Part Occupation Certificates. However, progress on Towers B and C has been inconsistent. As of the latest RERA filings in March 2024, 79% of Tower B (G+28) is complete, while Tower C is only at 29%. Though G+10 RCC work for Tower C is completed, it has not been reported on the RERA portal by the developer, resulting in approximately 90 complaints from allottees to GujRERA for unit possession, with 42 concerning Tower C.
A senior state government official stated, “We reviewed the RERA Act’s Section 8 regarding the obligations following the lapse or revocation of project registration. Both projects’ end dates have lapsed, canceling their registrations. To ensure work resumes and allottees receive possession of their units, a competent authority’s decision is required. The committee has decided to proceed per Section 8. The allottees’ association will manage the work, with the state government assisting in developing the association. Furthermore, GujRERA, GIFT City, and the urban development department will collaborate to guarantee project completion. Should the allottees’ association decline the responsibility, alternative solutions will be explored.” Officials view this decision as a pathway to secure possession for buyers while involving regulatory bodies and GIFT City authorities in oversight and coordination.
