UP-RERA Enhances Oversight of Real Estate Project Accounts

17 Oct 2023 CW Team

As per Section 4(2)(1)(D) of the RERA Act 2016, the legislation stipulates the rule of diverting 70% of funds into real estate project-related bank accounts. Furthermore, following RBI's directives issued on December 14, 2020, UP-RERA, on December 24, 2020, issued its own directive, making it mandatory for promoters to maintain three bank accounts for all new real estate projects launched from April 1, 2021.

Sanjay Bhoosreddy, Chairman of UP-RERA, emphasised the importance of promoting transparency and efficient utilisation of funds in construction. He stated, "We have initiated steps to ensure a transparent system for opening and managing project-related bank accounts. Collaboration between banks and promoters will enhance transparency in the banking system related to project accounts."

Apart from requiring three bank accounts for new real estate projects, UP-RERA has requested SLBC to issue guidelines to banks and financial institutions. These guidelines include:

1. Automatic Deduction: Promoters are required to instruct banks to automatically deduct 70% and 30% from the collection account and deposit these amounts into separate transaction accounts, respectively.

2. Account Operations: Bank accounts will only be opened in the main promoter's name, and banks must ensure that funds from the separate account are exclusively used for the construction and development of the specific project. Promoters will not be provided with debit cards, checkbooks, or net banking facilities.

3. Transparency Reporting: Banks are to communicate their adherence to the above guidelines, and promoters are to upload this information onto the UP-RERA portal.

This proactive approach aims to establish stringent provisions for the management of bank accounts related to real estate projects, ensuring transparency and strict compliance with regulations. Additionally, banks must confirm that transactions from the project's separate account align with the progress of construction, as certified by the promoter's organisation's engineer, architect, and chartered accountant.

With these measures in place, UP-RERA seeks to foster a more transparent and accountable real estate sector in Uttar Pradesh, promoting the interests of homebuyers and the real estate industry alike.

In a move to enhance transparency and strict compliance with banking system regulations related to real estate projects, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has written to the State Level Bank Committee (SLBC). UP-RERA has requested the SLBC's support in managing bank accounts for real estate projects in accordance with the guidelines set by the Reserve Bank of India (RBI) and the Real Estate Regulatory Act (RERA). As per Section 4(2)(1)(D) of the RERA Act 2016, the legislation stipulates the rule of diverting 70% of funds into real estate project-related bank accounts. Furthermore, following RBI's directives issued on December 14, 2020, UP-RERA, on December 24, 2020, issued its own directive, making it mandatory for promoters to maintain three bank accounts for all new real estate projects launched from April 1, 2021. Sanjay Bhoosreddy, Chairman of UP-RERA, emphasised the importance of promoting transparency and efficient utilisation of funds in construction. He stated, We have initiated steps to ensure a transparent system for opening and managing project-related bank accounts. Collaboration between banks and promoters will enhance transparency in the banking system related to project accounts. Apart from requiring three bank accounts for new real estate projects, UP-RERA has requested SLBC to issue guidelines to banks and financial institutions. These guidelines include: 1. Automatic Deduction: Promoters are required to instruct banks to automatically deduct 70% and 30% from the collection account and deposit these amounts into separate transaction accounts, respectively. 2. Account Operations: Bank accounts will only be opened in the main promoter's name, and banks must ensure that funds from the separate account are exclusively used for the construction and development of the specific project. Promoters will not be provided with debit cards, checkbooks, or net banking facilities. 3. Transparency Reporting: Banks are to communicate their adherence to the above guidelines, and promoters are to upload this information onto the UP-RERA portal. This proactive approach aims to establish stringent provisions for the management of bank accounts related to real estate projects, ensuring transparency and strict compliance with regulations. Additionally, banks must confirm that transactions from the project's separate account align with the progress of construction, as certified by the promoter's organisation's engineer, architect, and chartered accountant. With these measures in place, UP-RERA seeks to foster a more transparent and accountable real estate sector in Uttar Pradesh, promoting the interests of homebuyers and the real estate industry alike.

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Infrastructure Energy

07 Apr 2026

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..

Infrastructure Energy

07 Apr 2026

Gujarat Pushes Biogas Growth With 193 Operational Units

Gujarat has operationalised 193 biogas plants across the state and is planning to add 60 more units as part of a broader push to scale up clean and sustainable energy solutions. The existing plants, established under various government-supported schemes, process organic waste including cattle dung and agricultural residue to produce biogas and a nutrient-rich slurry. The output is mainly used for cooking and other energy needs in rural and semi-urban communities, while also improving local waste management practices. The Gujarat Energy Development Agency (GEDA) is leading the initiative and is..