GujRERA Bank Account Directions 2025: Key Guidelines for Compliance

The Gujarat Real Estate Regulatory Authority (GujRERA) issued an Order on 20 December 2024, introducing the GujRERA Bank Account Directions 2025, which will take effect on 1 January 2025. These directions aim to ensure the structured operation of bank accounts for projects registered with GujRERA. Replacing the previous 2018 Directions and subsequent circulars from 2022 and 2024, this framework emphasizes financial transparency and regulatory compliance for real estate projects in Gujarat.

Key Highlights of the New Directions

1. Three-Tier Bank Account System:
   All ongoing projects registered with GujRERA must transition to the mandatory three-tier bank account system immediately after the publication of the Order, even before the Directions formally come into effect.
2. Bank Accounts Within Gujarat:
   Promoters holding RERA bank accounts in branches outside Gujarat are required to transfer their accounts to branches within the state. This measure ensures localized financial operations for better monitoring and compliance.
3. Joint RERA Bank Accounts for Multiple Promoters:
   For projects involving multiple promoters or joint rights over project land:
   • A Joint RERA Bank Account must be established in the name of all promoters.
   • Alternatively, an individual holding Power of Attorney from all joint landholders may operate the account.
   • These arrangements must be reported to GujRERA for regulatory oversight.
4. Applicability for Joint Development Agreements (JDAs):
   In JDAs, the principal promoter must ensure appropriate contractual or legal mechanisms are in place to facilitate the operation of RERA accounts.
5. Penalties for Non-Compliance:
   Promoters failing to adhere to these Directions will face penalties under Sections 60 and 63 of the RERA Act.

Related Circular (23 September 2024)

A prior circular mandated that all promoters applying for project registration open a RERA bank account in a Scheduled Bank Branch operating within Gujarat. Promoters of already registered projects were also directed to transfer existing RERA accounts outside Gujarat to compliant bank branches within the state.

Conclusion

The GujRERA Bank Account Directions 2025 aim to enhance financial accountability and transparency in Gujarat’s real estate sector. By mandating localized bank operations and a structured three-tier account system, these Directions strengthen the regulatory framework, ensuring compliance and protecting stakeholders’ interests.