In a significant ruling, the Gujarat Real Estate Regulatory Authority (GUJRERA) has mandated the developer of the World Trade Center (WTC) project at GIFT City to refund payments to 24 buyers, including interest. This decision follows delays in possession and unmet promises regarding assured returns.
The order was issued on March 5 and pertains to Towers A, B, C, and D within the project in Gandhinagar’s phases one and two. While Towers A and D have received completion certificates, construction continues on Tower C—and Tower B is nearing completion.
According to RERA’s findings, buyers had paid close to 95% of their total amounts but never received possession or guaranteed returns. The developer contended that these agreements fell outside RERA’s jurisdiction because they were commercial transactions. That argument didn’t hold up; GUJRERA stressed that this issue falls under the Real Estate (Regulation and Development) Act of 2016.
This situation is further complicated by alleged financial irregularities tied to the company and its directors, who operate outside Gujarat. Reports suggest Enforcement Directorate raids resulted in seized financial records related to this case.
Additionally, GIFT Authority has indicated that it may cancel the land lease agreement for this project and could withdraw development permissions altogether. Under the recent order from GUJRERA, not only must the developer return all funds paid by these buyers with interest rates between 9% and 10%, but calculations will go back to each payment date until full repayment is completed.