Curation Team
AHMEDABAD: The Gujarat Real Estate Regulatory Authority (GujRERA) has written to the state urban development department (UDD) seeking a solution for completing the long-stalled World Trade Centre (WTC) project at GIFT City, where thousands of investors’ funds remain locked.
According to sources, the intervention comes after the project’s promoter was taken into custody by the Enforcement Directorate (ED) on charges of real estate fraud, and the association of allottees verbally said that they were unable to complete the project.
Officials said the project, launched in 2014-15, was meant to have four towers. “The developer completed two, but construction on the other two stopped midway. Several buyers lodged complaints with GujRERA against the WTC Noida Development Company. However, there is little possibility that the firm can complete the project as its promoter, Ashish Bhalla, was arrested by the Enforcement Directorate (ED) in connection with real estate fraud. In such a situation, we decided to protect the interest of buyers by writing to the UDD to decide on a way to complete the project,” said an official.
The matter has already seen a series of controversies and RERA complaints. GIFT City authorities earlier cancelled the development agreement with WTC for its B and C towers. Under the law, the association of allottees can step in and complete the project, but it has told officials that it is not in a position to do so, revealed sources.
According to sources, this is the first time GujRERA has approached the UDD for intervention in completing a stalled project. “GIFT City is in principle agreeing to complete the project, and we are assessing various possibilities,” a source said.
GujRERA issues directives to banks for project loan
GujRERA has issued fresh guidelines to banks to ensure greater diligence in sanctioning real estate project loans. According to the directives, 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.
“Banks must ensure that the creation of a mortgage is recorded with the concerned revenue authorities immediately after execution of the mortgage deed. Banks must exercise due diligence while funding projects where the promoter has already availed a loan from another bank,” stated the rules.
