July 5, 2024: The Gujarat Real Estate Regulatory Authority (GujRERA) has frozen the bank accounts of around 1,000 real estate developers for not meeting quarter-end compliance (QEC) requirements. These requirements mandate RERA-registered projects to submit progress reports according to their declared timelines. GujRERA, which can impose penalties after hearings, has taken this large-scale action for the first time.
Developers with frozen accounts cannot access funds without GujRERA’s approval. When project registrations lapse, they are prohibited from booking unsold units, and any bookings must be deposited via cheque into a dedicated RERA account.
Out of approximately 15,000 registered projects in the state, GujRERA started this enforcement a fortnight ago. Since then, 250 developers have complied, while the others are still completing their paperwork. Affected developers are seeking help from chartered accountants to unfreeze their accounts, and those not yet impacted are rushing to apply for extensions.
QEC is a crucial part of the RERA framework, ensuring projects stick to their proposed schedules. Many developers failed to report project completion or request extensions, even if their projects were incomplete by the deadlines. As a result, GujRERA directed the State Level Banking Committee (SLBC) to freeze the accounts of these non-compliant developers.
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