What is the World Trade Centre (WTC) project at GIFT City?
The WTC project at GIFT City was launched in 2014-15 with plans to build four towers. Out of these, two towers were completed, while construction on the other two stopped midway, leaving thousands of investors affected.
Why has the project stalled?
The project stalled after its promoter, Ashish Bhalla of WTC Noida Development Company, was arrested by the Enforcement Directorate (ED) on charges of real estate fraud. With the promoter in custody, the company is unable to complete the remaining towers.
What role is GujRERA playing in this case?
GujRERA has written to the state urban development department (UDD) seeking intervention to find a way to complete the project and safeguard the interests of homebuyers and investors.
Why can’t the association of allottees complete the project?
Under RERA, the association of allottees has the right to step in and finish a stalled project. However, in this case, the association informed officials that it does not have the financial or technical capacity to do so.
What action has GIFT City taken regarding this project?
GIFT City authorities cancelled the development agreement with WTC for its B and C towers due to non-completion. Currently, they are assessing the possibility of completing the project themselves.
Is this the first time GujRERA has sought UDD’s intervention?
Yes. According to sources, this is the first instance where GujRERA has approached the state urban development department for completing a stalled project.
What directives has GujRERA issued to banks in this context?
Alongside this intervention, GujRERA has also issued fresh guidelines to banks regarding project loans. Banks must:
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Avoid sanctioning loans for units where an agreement for sale or sale deed is already executed before the mortgage deed.
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Record the mortgage with the concerned revenue authority immediately after execution.
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Exercise due diligence if the promoter has already availed a loan from another bank.
What is the significance of this development for buyers?
The move shows GujRERA’s proactive stance in protecting investors by ensuring that stalled projects are completed, either by involving UDD or by encouraging alternative completion strategies.
