Lucknow: Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued a strong instruction to real estate developers, which is to provide details of 03 accounts related to projects such as collection accounts, different accounts and transactions accounts on the UP Rera portal.
This has been done in accordance with the guidelines issued on 29.11.2023. Now depositing money received from homebuilders in the collection account of the project has been made legally compulsory for promoters. Additionally, promoters should include all the campaigners related to the project and the collection account details of the project in the advertising material.
UP RERA has instructed all banks to apply a mechanism of automatic transfer of 70% of money received in collection account into separate accounts and 30% in transactions account daily. The amount in separate account is strictly for activities related to completion of the project. Money withdrawal from separate account is allowed only in proportion to the work of the complete project, which is duly certified by an engineer, architect and chartered accountant.
UP RERA President Sanjay R. Bhusreddi appealed to the promoters and allottees to thoroughly check all the project-related details on the UP RERA portal before investing and ensure that the payment has been made only in the designated collection account. This will prevent the misuse of money, ensure proper use for the development of the project, and will help complete the project on time. Timely project closing not only enhances the credibility of promoters and fulfills the homeowner's dream for buyers, but also strengthens the positive role of the real estate sector in the overall development of the state.
In some cases, it has been observed that promoters do not deposit the funds received from the allottees to the specified collection account, but transfer them to other accounts, making them misuse of money rather than using them for the development of the project. This exercise is a violation of RERA provisions and a punishable offense. UP RERA is taking separate legal action against such cases. To increase transparency and promote the development of the region, UP RERA has given a collection account details of all the live RERA-registered projects available on the UP Rera portal under the link “Details of Collection Account” link.
In addition, the UP RERA chief insisted that strict legal action will be taken by the RERA against any violation of these provisions, especially if the homebuir fund is deposited in unauthorized accounts rather than a specified collection account.
