Gujarat RERA Suspends Registration of Surat Housing Project, Bans Sales and Marketing

The Gujarat Real Estate Regulatory Authority (GUJ RERA) has issued an order suspending the registration of a housing project in Surat with immediate effect. The authority has also imposed a ban on booking, selling, and marketing of the project. The order, issued by RERA Secretary AJ Desai on February 21, was addressed to Bhuminbhai Rameshbhai Butani, a partner of Sahajanand Infrastructure Partnership Firm, and others involved in the project named Sahajanand Green City in Kamrej, Surat.

The mixed-use development project, which includes both residential and commercial units, was launched in 2015 and registered with RERA in 2018. According to information available on the RERA website, the project consists of 571 units in six towers, with 407 units still available for sale. The official completion date for the project was set for September 30, 2023, but as of now, the project status remains ongoing.

The suspension order by RERA is based on a January 18 letter from the Surat Urban Development Authority (SUDA) and a subsequent order recorded by RERA on February 20. The authority has acted under Section 36 of the Real Estate (Regulation and Development) Act, 2016, which empowers it to intervene in cases where development permissions are in question.

The order states that the development permission granted for Block No. 166 of Moje Kamrej, Ta.- Kamrej, Surat has been suspended, prohibiting any further construction at the site. This action is intended to protect the interests of prospective homebuyers and other stakeholders.

With the project registration now suspended, the developer is prohibited from carrying out any marketing, booking, or sales of units in Sahajanand Green City. The order also warns that if the developer continues to market, book, or sell units despite the ban, they will face penal action under the provisions of the RERA Act.

The suspension of this project highlights the strict regulatory oversight being exercised by GUJ RERA to ensure compliance with legal requirements and protect homebuyers from uncertain or stalled projects. Regulatory authorities are increasingly scrutinizing projects to prevent delays and ensure that developers adhere to their commitments and timelines.

While the Sahajanand Green City project remains under review, homebuyers who have already invested in the project may face uncertainty regarding possession and completion timelines. The RERA Act mandates that developers fulfill their obligations and any deviations can lead to legal action and penalties.

This action by GUJ RERA serves as a warning to other developers across Gujarat, emphasizing that projects must comply with approved permissions and that failure to do so can result in severe consequences. The suspension of the project also highlights the importance of regulatory approvals and the need for homebuyers to verify project status on the RERA portal before making any purchase decisions.

Image source- gujrera