Godrej Denied Extension: Gurugram RERA’s Decision

Homebuyers in Gurugram can breathe a sigh of relief as the Gurugram Real Estate Regulatory Authority (RERA) takes a strong stand against non-compliance. In a recent judgment, RERA rejected an extension application filed by Godrej Developers and Properties LLP and froze their bank accounts associated with a real estate project.

The action stems from Godrej Developers’ alleged failure to adhere to the Real Estate (Regulation and Development) Act, 2016 (RERA Act) for their Godrej Air Phase 4 project located in Sector 85, Gurugram. The project’s initial RERA registration, obtained in December 2018, expired in June 2023. Godrej Developers reportedly sought an extension but failed to address critical deficiencies identified by RERA during the review process.

These shortcomings, as per media reports, included an expired license and discrepancies in the bank balance details submitted within the mandatory quarterly progress reports (QPRs). Despite receiving multiple warnings and reminders from RERA to rectify these issues, Godrej Developers allegedly failed to take any corrective action.

Following this inaction, RERA Gurugram issued a final show cause notice in February 2024, warning of potential rejection of the extension application. With no response forthcoming from Godrej Developers, RERA proceeded to dismiss the extension request and take the harsher step of freezing the project’s bank accounts.

This incident underscores RERA’s commitment to protecting homebuyer interests and ensuring developers operate within the legal framework established by the RERA Act. The freezing of bank accounts serves as a powerful deterrent against non-compliance and safeguards invested funds from potential misuse. The action also sends a clear message to other developers that RERA will not tolerate repeated violations of the Act.

It remains to be seen how Godrej Developers will respond to this decision. Homebuyers invested in the Godrej Air Phase 4 project are likely to seek clarification on the project’s timeline and the impact of this ruling on their investments.

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