Gujarat RERA Halts Banks Seizure of Homeowners Properties in Builder Default Case

Dated on: Tuesday 1st April 2025

The Gujarat Real Estate Regulatory Authority (GujRERA) has directed a nationalized bank to halt the seizure of properties belonging to allottees in a case where a builder defaulted on a loan. Emphasizing the rights of allottees, GujRERA instructed the bank to relinquish possession of properties it had acquired until a final order is issued. This decision came after approximately 40 homeowners from Vadodara sought intervention, highlighting that the RERA Act prioritizes protecting allottees’ interests over banks’ claims. The bank had argued its actions were in line with the SARFAESI Act, citing the builder’s failure to obtain the necessary no-objection certificate