Gujarat RERA Warns Against Risky NBFC Funding in Real Estate

Dated on: Friday 4th July 2025

Gujarat RERA has raised concerns over developers increasingly relying on NBFCs for project funding, often bypassing RERA-mandated escrow accounts. This practice undermines financial transparency and risks homebuyer interests, as NBFCs may not ensure compliance with regulatory safeguards. The authority emphasized that all project-related funds, including those from NBFCs, must be routed through RERA-registered bank accounts. It urged stricter enforcement to curb unregulated financing and ensure accountability in the real estate sector.