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The Gujarat Real Estate Regulatory Authority (GujRERA) has appealed to the state Urban Development Department (UDD) for assistance in completing the halted World Trade Centre (WTC) project at GIFT City. The project, initiated in 2014-15, aimed to construct four towers; however, only two were completed before construction ceased. The project's promoter was arrested by the Enforcement Directorate on charges of real estate fraud, leaving investors' funds locked. The association of allottees has expressed its inability to complete the project, prompting GujRERA's request for state intervention. This marks the first instance of GujRERA seeking such intervention for a stalled project.
The Gujarat Real Estate Regulatory Authority (GujRERA) has formally requested the state Urban Development Department (UDD) to devise a strategy to complete the long-delayed World Trade Centre (WTC) project at GIFT City, where investor funds remain immobilized. This initiative follows the arrest of the project's promoter, Ashish Bhalla, by the Enforcement Directorate on charges of real estate fraud. Additionally, the association of allottees has verbally communicated its inability to finish the project. Advertisement
Launched in 2014-15, the WTC project was envisioned to comprise four towers. While construction of two towers was completed, work on the remaining two halted midway. Numerous buyers have lodged complaints with GujRERA against the WTC Noida Development Company. However, with the promoter's arrest, the likelihood of the company completing the project appears minimal. In light of this, GujRERA has sought assistance from the UDD to determine a viable path forward to safeguard the interests of the investors.
The situation has been further complicated by a series of controversies and RERA complaints. Earlier, GIFT City authorities had canceled the development agreement with WTC for its B and C towers. Under the prevailing laws, the association of allottees has the option to step in and complete the project. However, they have informed officials that they are not in a position to undertake this responsibility.
This marks the first instance where GujRERA has approached the UDD for intervention in completing a stalled project. Sources indicate that GIFT City is in principle agreeable to completing the project and is currently evaluating various possibilities.
In a related development, GujRERA has issued new directives to banks to ensure greater diligence in sanctioning real estate project loans. The guidelines stipulate that banks must not sanction project loans for units where an agreement for sale or sale deed has already been executed with buyers before the mortgage deed is signed. Furthermore, banks are required to ensure that the creation of a mortgage is recorded with the concerned revenue authorities immediately after the execution of the mortgage deed. The rules also mandate that banks exercise due diligence when funding projects where the promoter has already availed a loan from another bank.
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