Ahmedabad Cover Story
‘Can’t use EoI to sell properties’
RERA to take suo motu action against builders selling properties based on Expression of Interest (EoI) before mandatory registration under GUJRERA
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Gujarat Real Estate Regulatory Authority (GUJRERA) has plans to take suo motu action against developers who are selling their projects to end users and investors via Expression of Interest (EoI). The move is being planned in light of instances where developers are selling residential and commercial projects even before getting the mandatory GUJRERA registration. Most of such projects are in the western part of the city and are being sold on the EoI model through different marketing channels.
Sources said recently the area between SG Highway and SP Ring Road has seen several such realty deals.
“Areas like Sindhu Bhavan Road (SBR) and Iscon-Ambli Road among others are also selling retail cum office space on paper to their investors.” The sources said these projects however do not have the GUJRERA nod as developers are either yet to apply for registration or have not got the clearance for the same after applying.
Talking to Mirror a developer said many investors prefer to invest at this stage (before GUJRERA registration) as they get special rates (higher discounts) on upcoming properties. “However, if the builder is not trustworthy then it can create issues for investors,” said the source.
A senior advocate told Mirror that most developers sell space immediately after buying land and the space thus sold makes up almost 70% of the total project cost. “They do it to quickly recover their money,” said the advocate.
“Most developers buy land on term payment which has to be paid over a short period. So developers immediately start selling their project via realtors (brokers) and to their regular investors, even before getting clearances from respective authorities like AUDA, AMC or GUJRERA,” the advocate said. He said this is done to recover the initial investment so that payments can be made for the land that they bought. “However, it’s still not legal, unless it is GUJRERA registered. Since most of the time the partial payment is in case of commercial or retail properties, there is an issue of lack of accountability too.”
A senior GUJRERA official said no project can be sold to investors or end users unless it’s registered with GUJRERA and has the mandatory clearance. “Even the marketing of such projects under EOI is illegal if it is yet to get the RERA number. However, if such a thing is happening we will take action against them.”
Game of Trust
Realty experts said investing in a project before it gets a nod from respective authorities is an old practice but it needs to be done with caution. Managing Partner of Space Management, Hitesh Shah said there are established developers who have a strong investor base and they prefer to invest in the upcoming schemes of such developers in advance due to the value, commitment and past accountability that they bring to the project. “However, when a developer is a new entrant there is a question of trust and accountability. But most importantly, the role of the broker is crucial; if s/he isn’t trustworthy, you may face opportunity loss and sometimes delay in getting your money back.”
Most developers buy land on term payment which has to be paid over a short period. So they start selling their project via brokers via EoI even before RERA nod
–A senior advocate
Others Specials
NanoTech Consultancy Drives Make in India Tech Revolution: Surat’s Infotech Leader, in Line with PM Modi’s Vision, Collaborates with Intel for Revolutionary Semiconductor Manufacturing
Civil Work to Commence Soon at post Vareli Ta-Kamrej Facility, Marking the First Semiconductor Project in Southern Gujarat After Vibrant Gujarat Initiatives
Surat (Gujarat) [India], March 23: In a groundbreaking collaboration that echoes the spirit of the “Make in India” initiative and aligns with Prime Minister Narendra Modi’s visionary tech goals, NanoTech Consultancy, a leader in Surat’s infotech sector, is set to revolutionize semiconductor manufacturing in partnership with Intel, the world’s largest manufacturer of central processing units and semiconductors.
As part of this milestone initiative, NanoTech Consultancy is gearing up to commence civil work at its Kamrej facility, signifying a crucial step towards establishing the first semiconductor project in Southern Gujarat. This development comes in the wake of extensive initiatives during Vibrant Gujarat, where most INFOTECH companies have opted for locations in Sanand or GIFT City. NanoTech Consultancy’s decision to establish a semiconductor project in Kamrej not only adds a new dimension to the regional tech landscape but also marks a significant stride towards realizing the objectives set during Vibrant Gujarat.
“Our strategic partnership with Intel reflects our unwavering commitment to innovation and excellence in the semiconductor industry. By merging our cutting-edge technologies with Intel’s manufacturing capabilities, we are poised to deliver unparalleled semiconductor manufacturing capabilities to our clients,” affirmed a spokesperson for NanoTech Consultancy.
NanoTech Consultancy’s comprehensive solutions in nanotechnology, software development, and semiconductor manufacturing, coupled with a client-centric approach, position it as a leader in addressing complex challenges. The company empowers businesses with state-of-the-art problem-solving tools, utilizing information technology to drive efficiency and achieve tangible results.
Recognizing NanoTech Consultancy’s pivotal role in this achievement, a representative stated, “The capacity of the plant and the collaborative vision with Intel by this Surat-based premium consultancy, providing 360-degree solutions in the infotech segment, is commendable. It’s a proud moment for Surat and, especially, for Gujarat, aligning with the vision of Prime Minister Shri Narendra Modi.”
NanoTech Consultancy’s success is intrinsically linked to the success of its clients. With a commitment to innovation, strategic collaborations, and a client-centric approach, the company continues to lead the way in the technology industry.Based in Kamrej, NanoTech Consultancy is at the forefront of cutting-edge technology, specializing in providing tailored solutions in the realms of nanotechnology, software development, and semiconductor manufacturing. The company has a successful track record of 11 years and offers its unmatched technology solutions to clients across diverse sectors and geographies.