In a significant move, the Gujarat Real Estate Regulatory Authority (GujRERA) has ordered the developer of the much-publicized Agora City Centre in Vadodara to refund payments to homebuyers and commercial property investors. The order also mandates the payment of interest on deposits made at the time of booking, offering long-overdue relief to multiple complainants who were left waiting for possession.
Project Branded as Gujarat’s Largest Integrated Development
Agora City Centre was originally promoted as Gujarat’s largest integrated residential and commercial mall complex. However, the project failed to meet its delivery deadlines, causing immense financial and emotional stress for buyers. Manav Infrastructure Private Limited, the developer, had promised delivery of flats and shops before 2020, but failed to execute sale deeds or hand over possession despite receiving full payments, including additional charges like electricity and local authority fees.
Buyers Take Legal Route After Delays
After years of delays and broken commitments, numerous buyers approached GujRERA. Among them was the Patel family, who had invested in two flats and two shops and paid the full amount of ₹1.91 crore. GujRERA, noting the developer’s repeated absence from hearings, passed an ex-parte order. It directed the developer to pay 9% interest from December 31, 2020, on the total amount until the possession is handed over.
In another instance, complainants Dhruv Agrawal and Pradip Agrawal received a refund order for partial payment made towards an office space. GujRERA further referred the case to its special secretary to initiate proceedings against the developer for violating the RERA Act by not executing a sales agreement after collecting more than 10% of the total amount.
Eight-Year Legal and Environmental Battle
The Agora City Centre has been under scrutiny for nearly eight years. Originally touted as a flagship development by Balaji Construction Vadodara (a subsidiary of Manav Infrastructure Pvt. Ltd.), the project is now listed as a stressed asset by LIC Housing Finance Ltd, with outstanding dues of ₹711 crore. The lender has initiated auction proceedings to recover its dues.
Additionally, the project has drawn criticism for alleged encroachments along the Vishwamitri River. In 2023, city authorities demolished the clubhouse after major floods highlighted the ecological risks of construction in flood-prone zones.
GujRERA’s Message to Developers
The ruling sends a strong message to developers across the state about accountability and adherence to RERA norms. GujRERA reiterated that collecting over 10% of the booking amount without executing a registered agreement for sale is a punishable offence under the Real Estate (Regulation and Development) Act, 2016.
This case highlights the importance of RERA in protecting consumer interests and ensuring transparency in real estate transactions. The authority’s strict action is expected to restore some confidence among investors who have long felt helpless against unresponsive developers.
