Gujarat Pioneers Allottee-Led Completion of Stalled GIFT City Project
In an unprecedented move for Gujarat, a high-level committee chaired by the chief secretary has resolved to transfer a stalled real estate development to the association of allottees for its finalization. This decision specifically targets the World Trade Center (WTC) located within GIFT City, where Towers B and C have remained incomplete after the original promoter was arrested by the Enforcement Directorate (ED) in connection with a fraud case, as per sources.
Mechanism and Conditions for Handover
The transfer process hinges on the willingness of the allottees to mobilize funds and appoint contractors to conclude the construction. Should they agree, GIFT City is anticipated to reactivate the project lease, which is currently annulled. Additionally, a new promoter's name will be incorporated into the project's registration certificate with the Gujarat Real Estate Regulatory Authority (GujRERA), sources indicated.
This action stems from a referral by GujRERA to the state government under Section 8 of the Real Estate (Regulation and Development) Act, 2016, which sought guidance on completing the pending work on the two towers after their deadlines expired. A meeting convened last September, attended by then Chief Secretary Pankaj Joshi, GujRERA Chairperson Anita Karwal, Urban Development Principal Secretary M Thennarasan, GIFT City MD and CEO Sanjay Kaul, among others, deliberated on the issue, culminating in a decision finalized recently.
Project Status and Allottee Initiatives
The WTC project, initiated by WTC Noida Development Company Pvt Ltd, comprises Towers A, B, C, and D. Towers A, B, and D, along with Tower C, are registered with GujRERA as ongoing projects. While Towers A and D have been completed, with GIFT City authorities issuing Part Occupation Certificates, progress on Towers B and C is inconsistent.
According to the latest RERA filings from March 2024, Tower B (G+28) is 79% complete, whereas Tower C is only 29% finished. Sources noted that the G+10 RCC work for Tower C has been completed but not updated on the RERA portal by the developer. Allottees have submitted approximately 90 complaints to GujRERA demanding possession of their units, with 42 of these pertaining to Tower C.
A group of allottees for Tower B is in the process of forming an association, while members of Tower C have already established one and are proceeding with society registration, according to sources.
Official Statement and Future Steps
A senior state government official elaborated, "We discussed Section 8 of the RERA Act, which addresses the authority's obligations following the lapse or revocation of registration. Since the end dates for both projects have passed, leading to cancelled registrations, a competent authority's decision is necessary to resume work and ensure allottees receive their units. The committee has opted to proceed under Section 8, with the association of allottees overseeing completion, and the state government assisting the other group in forming their association. GujRERA, GIFT City, and the urban development and housing departments will collaborate to facilitate project finalization. If the allottees' association declines the task, alternative options will be explored."
Officials view this decision as a pathway to secure possession for buyers, while maintaining the involvement of regulatory bodies and GIFT City authorities in monitoring and coordination efforts.
