In a move that will send ripples through the Gurugram real estate market, the Gurugram Real Estate Regulatory Authority (RERA) has rejected Godrej Developers’ application for a crucial project registration extension. The decision, announced on April 9, 2024, follows a string of non-compliances by the developer with the Real Estate (Regulation and Development) Act, 2016 (RERA Act), leaving hundreds of homebuyers in limbo.
Godrej Air Phase 4, located in Sector 85, Gurugram, had its RERA registration expire in June 2023. The developer requested an extension to complete the project. However, RERA flagged deficiencies in their application, including an outdated license and discrepancies in bank balance information submitted in mandatory quarterly progress reports.
Despite issuing multiple reminders and a final show cause notice in February 2024, Godrej Developers failed to address the concerns. Consequently, RERA Gurugram not only rejected the extension request but also froze the project’s account, effectively restricting the developer’s access to funds.
RERA Action Protects Homebuyers, Raises Concerns
This decisive action by RERA Gurugram prioritizes the interests of homebuyers in Godrej Air Phase 4. The frozen account ensures that funds are channeled towards project completion, safeguarding their investments. Homebuyers are advised to stay vigilant and actively seek updates from RERA Gurugram. They also have the right to file complaints with RERA if Godrej Developers continue to disregard their obligations.
The incident underscores the critical role RERA plays in protecting homebuyers from unscrupulous developers. It serves as a stark reminder to developers of the importance of adhering to RERA regulations and maintaining transparency throughout the project lifecycle.
This incident is likely to be closely monitored by other homebuyers invested in Godrej projects, raising concerns about potential delays or non-compliance in other ongoing developments. The onus now lies on Godrej Developers to swiftly address RERA’s concerns and expedite project completion to regain homebuyer trust and mitigate potential legal repercussions.
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