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LegalClue
H030🏠 Housing & Property

Builder abandoning redevelopment project midway

What you need to know

If builder abandons redevelopment, members can get refund of corpus with interest, invoke RERA bank guarantee, and file police FIR for cheating under IPC Section 420.

Your rights

1

Refund of corpus with interest

2

Invoke RERA bank guarantee

3

Compensation for alternate accommodation costs

4

Police FIR for cheating under IPC Section 420

What you should do now

Action first
1

File RERA complaint immediately

  • File on gujrera.gujarat.gov.in with: redevelopment agreement, corpus paid receipts, transit rent records
  • RERA Authority can invoke bank guarantee and facilitate refund or completion
  • This is the most effective first step when builder has disappeared
2

Also file police FIR for cheating

  • File FIR under IPC Section 420
  • Engage a criminal lawyer for this — police case needs professional guidance

Acts applicable

Real Estate (Regulation and Development) Act 2016

central

Section 8 — Functions of Authority on project lapse

Indian Penal Code

central

Section 420 — Cheating and dishonestly inducing delivery

Gujarat RERA Rules 2017

gujarat

Bank guarantee provisions

Where to complain

Consumer complaint portal: e-jagriti.gov.in (replaced edaakhil.nic.in as of Jan 2025). Labour complaints: col.gujarat.gov.in. All links verified June 2026 via web search against official government sources.