Gujarat RERA prevents bank from seizing properties of allottees

Dated on: Friday 11th April 2025

The Gujarat Real Estate Regulatory Authority (GujRERA) has intervened to protect approximately 40 homebuyers in Vadodara from a nationalised bank's attempt to seize their properties. The bank sought possession under the SARFAESI Act after the builder defaulted on a loan. However, GujRERA emphasized that allottees' rights take precedence and ordered the bank to relinquish possession of any properties already acquired, pending a final decision. The bank argued that the builder failed to obtain the necessary no-objection certificate before selling the units, but GujRERA maintained that buyers' investments must be safeguarded.