The Real Estate Regulatory Authority (RERA) on June 01, 2023, published The National Capital Territory of Delhi Real Estate (Regulation & Development) (Mandatory Bank Accounts for Registration of Projects) Guidelines, 2023
These guidelines aim to define the types and categories of the accounts required to be opened by the promoter prior to registration of the project with the Authority and prescribe procedures for the utilization of funds collected from the allottees.
These guidelines shall come into force on June 01, 2023
The following has been stated namely: -
• It states the Mandatory project accounts to be opened by the promoter: the promoter of any real estate project shall open the following three bank accounts before registration of the project namely: -
(i) Project Master Account
(ii) Project RERA Escrow Account
(iii) Project Free Account
• It states that the promoter shall be responsible for the transfer/deposit of seventy percent of the amount collected from allottees (other than pass-through charges and indirect taxes) in the project RERA escrow account. In the case of a project, where the estimated cost to complete the project is higher than the estimated amount of total receivables at any stage, hundred percent of the amount collected from the allottees (other than pass-through charges and indirect taxes) shall be deposited in the "RERA Account‟ till the situation is eased out.
• The funds in Project RERA Escrow Account shall be used strictly for meeting expenditure on the following purposes namely: -
i. land cost including the registration charges as per law.
ii. construction and development of projects like interior works, landscape development, and development of common facilities like pool, gym, lighting, etc.
iii. payment of prescribed fees required for seeking various approvals from concerned departments/authorities.
• It The Promoter shall utilize money deposited in the 'Free Account' for making the expenditure for the following purposes namely: -
i. advertisements
ii. repayment of loans and interest thereof.
iii. paying the cost of finance
iv. paying pre-payment benefits
v. all kinds of taxes leviable as per law
• It states that the promoter shall be liable for any misappropriation or mis-utilization of funds from project accounts and the Authority may recommend criminal action against such promoter besides taking action under this Act.
• It states that If any doubt arises as to the interpretation of these guidelines, the decision of the Authority shall be final and binding on all concerned.
[Notification No. RERA/NCTD/guidelines/1/2023]
