Gujarat RERA Unveils SOP for Completion of Stalled Real Estate Projects
The Gujarat Real Estate Regulatory Authority (GujRERA) has introduced a Standard Operating Procedure (SOP) vide GujRERA/Order- 115 dated 23.07.2026 for intervention and completion of stalled or stressed real estate projects, laying down a structured mechanism for completing projects where the original promoter is unable or unwilling to do so.
The framework, issued under Sections 8 and 37 of the Real Estate (Regulation and Development) Act, 2016, is aimed at protecting homebuyers while ensuring that unfinished projects can be revived through a transparent and time-bound process.
Under the new framework, GujRERA can consider intervention in projects whose registration has lapsed, has been revoked, or which have otherwise been identified as stalled or stressed. The authority may take into account factors such as prolonged suspension of construction, the promoter's financial or legal inability to complete the project and a substantial number of complaints from allottees.
Allottee associations get first right of refusal
One of the key provisions of the SOP is that the Association of Allottees will have the first right of refusal to undertake completion of the remaining development work. Other options include the landowner, a mortgagee bank or financial institution, or another developer or promoter.
An allottee association may coordinate with GujRERA, submit a completion proposal, or undertake the remaining work either directly or through contractors, project management consultants or a new developer.
The authority may also invite other developers through an Expression of Interest process. Their financial strength, technical capability, previous project record and RERA compliance history will be among the factors considered.
Two-thirds consent required for completion proposal
The SOP requires a proposed completion plan to be supported by the consent of at least two-thirds of the project's allottees. Where an allottee association submits the proposal, the relevant general-body or governing-board resolution will also be required.
The framework's prescribed consent declaration also provides for the substitution or appointment of a new promoter and the transfer or assignment of rights, obligations and responsibilities necessary for completing the project.
Financial viability to determine revival model
GujRERA's SOP places considerable emphasis on the financial and technical feasibility of stalled projects. Completion proposals will have to set out the source and utilisation of funds, the balance cost of construction, outstanding lender liabilities, construction milestones and any additional amount that may be required from allottees.
The authority's feasibility assessment will also examine the physical stage of construction, structural condition, remaining development work, funds collected from buyers, the balance in the RERA separate account, outstanding receivables, lender and statutory liabilities, land title, encumbrances, approvals and pending litigation.
Promoters face restrictions after lapse or revocation
Once a project's registration lapses or is revoked, the promoter will no longer be permitted to advertise, market, book or sell units in the project. Withdrawals from the project's RERA separate account are also to be frozen pending further directions from the authority.
The original promoter will also be required to provide updated information on allottees, audited project finances, unsold inventory and encumbrances, including outstanding project loans.
GujRERA to oversee new completion entity
After examining proposals and consulting the appropriate government and competent authorities, GujRERA will determine the most appropriate model for completing the project. Factors will include the proposed entity's capability, the physical status of the project, technical feasibility, financial viability and the interests of allottees and other stakeholders.
Once a completion model is approved, the authority can hand over the project to the selected entity for the limited purpose of carrying out the remaining development work.
The new entity will remain subject to RERA compliance, while GujRERA can review progress at intervals of no more than six months. Failure to adhere to the approved completion schedule or financial plan could lead to further action under Sections 7 and 8 of the Act.
The new SOP therefore establishes a formal route for stalled projects to move from regulatory intervention to financial and technical assessment, selection of a completion entity and monitored revival, with the stated objective of safeguarding allottees and facilitating completion of unfinished developments.
