The Telangana Real Estate Regulatory Authority (TSRERA) on September 04, 2023, issued a notification regarding the complaints filed claiming that builders are not utilizing the amount given by them for the construction of said projects and using it for some other purposes & are delaying the construction/completion of project & handing over the project - Issuing of circular to promoters/ allottees, lenders, etc., for mandatory deposit of money into the RERA designated bank account.
The following has been stated: -
•The Authority under Section 37 of the Real Estate (Regulation & Development) Act, 2016 is vested with the power to issue directions to promoters, real estate agents, and allottees from time to time as it may consider necessary.
•Therefore, directions in the interest of the promoters, project, allottees, lenders, etc., are given namely: -
a. That the promoter of the project shall deposit the entire amount borrowed for the purpose of the project into the designated account of the project and the money so deposited shall be utilized and withdrawn only for the purpose of the development of the respective project.
b. In case the promoter borrows the money for the project and registers the project phase-wise as per explanation to section 3(2) of the Act, the promoter shall bifurcate and apportion the amount towards various phases and report the same during the quarterly updates along with the Bank statement with Chartered Accountants Certificate by way of Annexure.
c. The lenders/ Bankers /financial institutions shall also ensure to disbursement of such loans only to the designated RERA account of the project.
d.The chartered accountant based on the books of accounts maintained and while issuing certificates shall also report whether the amount borrowed for the purpose of the project has been deposited into the designated RERA account or not.
e.In the case of the existing projects, where the promoters have borrowed money for the purpose of the project and not utilized any portion of such money to the respective project shall deposit the unutilized portion of money into the designated RERA account within 3 months from the date of this notification.
The detailed notification is given in the document attached below.
[Notification No. 989/TSRERA/2023.]
