The Real Estate Regularity Authority, Bihar (RERA Bihar) on October 10, 2022, discussed the formulation of Standard Operating Procedure (SOP) for the operation of a separate account for the project as laid down under Section 4(2)(1)(D) of Real Estate (Regulation and Development) Act, 2016 which specifies the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the competent authority.
Regulation 8 (A) of Bihar Real Estate Regulatory Authority (General) Regulations (Amendment), 2022 mentions that the promoter would upload the report of the CA, Engineer, and Architect along with the quarterly progress report within 15 days of the expiry of the preceding quarter, also as required under Section 11 (a) of the Real Estate (Regulation and Development) Act, 2016 and Real Estate (Regulation and Development) Rules, 2017.
The Authority approved the following Standard Operating Procedure (SOP) for the operation of the dedicated separate account of the project-
- The physical progress report in the prescribed formats of the Engineer and Architect would be uploaded for every quarter. The financial progress report of the Chartered Accountant, which would indicate the amount spent on the project and the amount received from the allottees, both during the quarter and cumulatively till the reporting period would also be uploaded.
- The difference between the amount spent by the promoter on the project as per the report of the above-mentioned quarterly report and the amount received from the allottees of the project till the end of the quarter will define the tranche limit.
- The promoter would be entitled to withdraw funds from the dedicated separate account within the tranche limit as mentioned above without a certificate from the CA, Engineer, and Architect provided that such withdrawal does not exceed the amount withdrawn from the account in the preceding quarter.
- The promoter may withdraw either in installments or in full and part within the tranche limit without the report of the CA, Engineer, and Architect.
- If the amount spent on the project is less than the deposit received from the allottees then the promoter would be required to deposit 100% of future installments in this separate account up to the tranche limit or complete the work up to that extent out of their funds.
- A certificate from CA, Engineer, or Architect would be necessary for any withdrawal beyond this limit.
This comes into force with immediate effect.
[Notification No. RERA/EO Meeting/26/2022/345]
