Gujarat RERA imposes ₹2 Crore penalty on Avantis Dream Homes LLP for non-deposition of funds in RERA bank account
Case No.: SMC/NCAR/Online/Surat/14102025/00511
Coram: Shri P.R. Patel, Adjudicating Officer, GujRERA

• Promoter: Avantis Dream Homes LLP
• Project Name: Ofira Siesta, Surat
• Estimated Cost: ₹1,14,77,03,030/-

The Authority initiated a suo moto complaint after examining Form-5 uploaded by the Promoter. It was found that the Promoter failed to deposit 70% of amounts realised from allottees into the designated separate RERA bank account, in violation of Section 4(2)(l)(d) of the Real Estate (Regulation and Development) Act, 2016 read with relevant Rules and Regulations.

Amounts not deposited:

• FY 2021-22: ₹10,19,63,012/-
• FY 2022-23: ₹21,11,08,019/-
• FY 2023-24: ₹9,40,02,586/-

Total non-deposited amount: ₹40,70,73,617/-

Promoter’s Defence:

The Promoter submitted that:

• There was no intention to violate the law.
• Funds were automatically adjusted by State Bank of India towards outstanding loan dues due to the bank’s right of set-off.
• All funds were utilised for the project.
• The project is now 100% complete with possession offered to allottees and no complaints pending.
• They requested condonation of the procedural lapse.

Authority’s Findings

The Adjudicating Officer held that:

• The non-deposition was intentional and within the knowledge of the Promoter.
• No prior intimation or approval was taken from the Authority.
• The justification of automatic bank adjustment was not accepted as a valid defence.
• The Promoter’s own submission amounted to an admission of deliberate non-compliance.
• No complete details of the SBI loan account for the three-year period were furnished.
• Financial indiscipline of this nature cannot be treated liberally (relying on the Hon’ble Supreme Court judgment in Bikram Chatterji & Ors. vs. Union of India, (2019) 19 SCC 161).

Final Order

The Promoter Avantis Dream Homes LLP is directed to pay a penalty of ₹2,00,00,000/- (Rupees Two Crores Only) within 30 days from the date of receipt of the order under Sections 60 and 63 of the RERA Act, 2016 for contravention of Section 4(2)(l)(d).

Important directions:

• The penalty amount cannot be withdrawn from the project’s RERA bank account.
• The penalty cannot be recovered from allottees (as per Rule 8(3) of the Gujarat RERA Rules).