The Gujarat Real Estate Regulatory Authority (GujRERA) has introduced the Voluntary Compliance Scheme (VCS) 2025, providing promoters a one-time opportunity to regularize pending Form-5 submissions without incurring heavy penalties. Announced via Order-102 on 19 December 2024, the scheme will be effective from 1 January 2025 to 31 March 2025. This initiative aims to address widespread non-compliance issues while reducing litigation.
Key Features of the Voluntary Compliance Scheme 2025
Under Section 4(2)(I)(D) of the Real Estate (Regulation and Development) Act, 2016, and Regulation 4 of the GujRERA General Regulations 2017, promoters must submit Form-5 within six months after the end of every financial year. Despite multiple extensions, non-compliance persists, prompting GujRERA to introduce this settlement scheme.
Applicability
- The scheme applies to all registered projects with pending Form-5 submissions for financial years 2017-18 to 2023-24.
- Excluded projects: Projects with completed Quarter End (QE) Compliance before 30 September 2024, except for FY 2023-24.
- Applicable even for projects under Section 63 proceedings for non-compliance.
Scheme Duration
The scheme will run from 1 January 2025 to 31 March 2025.
Submission Process
- Online Filing:
Promoters must log in to the GujRERA portal and upload the pending Form-5 submissions. - Late Processing Fees:
Promoters must pay a late processing fee based on the project cost:- Above ₹100 Cr: ₹3,00,000
- ₹50–100 Cr: ₹2,50,000
- ₹25–50 Cr: ₹1,25,000
- Below ₹25 Cr: ₹1,00,000
- One-Time Settlement:
This scheme offers a unique chance for promoters to regularize submissions without attracting severe penalties.
Penalties and Actions for Non-Compliance
- Post-Scheme Expiry:
Promoters who fail to comply by 31 March 2025 will face penalties under Sections 60, 61, and 63 of the RERA Act. - Freezing of Bank Accounts:
GujRERA may freeze the project’s RERA-designated bank account for continued non-compliance. - Suo Moto Proceedings:
Existing proceedings for non-compliance will be dropped upon successful submission under the scheme. However, prior penalties already imposed will remain valid.
Additional Provisions
- Technical Issues:
Promoters unable to submit due to portal issues can submit evidence to avoid penalties. - Assistance:
GujRERA has extended support through its official contact channels for smooth participation in the scheme.
Conclusion
The Voluntary Compliance Scheme 2025 provides a final opportunity for promoters to ensure compliance with GujRERA’s regulations while avoiding hefty penalties and litigation. This move reflects GujRERA’s commitment to fostering regulatory adherence in Gujarat’s real estate sector.
[xyz-ihs snippet=”Landmark-Books”]