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.

Resources

09 Mar 2026

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Real Estate

09 Mar 2026

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Real Estate

09 Mar 2026

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..