By Staff Reporter
In a proactive move towards enhancing transparency and compliance, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has communicated with the State Level Bank Committee (SLBC) regarding the meticulous management of bank accounts for real estate projects, aligning with the directives of the Reserve Bank of India (RBI) and the Real Estate (Regulation and Development) Act (RERA).
The UPRERA has underscored the imperative role of banks and financial institutions in ensuring that project promoters furnish detailed bank account information for real estate projects. Furthermore, it mandates the opening of three distinct accounts for new projects, namely the Collection Account, Separate Account (Project Account), and Expenditure Account.
In a statement, the UPRERA outlined the procedural intricacies. Promoters are required to provide standing instructions to banks, specifying an automated deduction of 70% and 30% from the Collection Account. The amounts are then to be deposited into the Separate and Transaction Accounts, respectively. Notably, these bank accounts are to remain under the sole name of the main promoter. To prevent misuse, the UPRERA has directed that banks refrain from providing debit cards, cheque books, and net banking facilities to the promoters.
The Authority emphasized that adherence to these guidelines is the responsibility of banks and financial institutions. Additionally, they are required to submit the relevant information to the UPRERA office, and promoters must upload this information on the designated portal, www.up-rera.in.
Sanjay Bhoosreddy, Chairman of UPRERA, stated, “We have taken initiative to ensure utilization of it solely in the construction and make a transparent system of opening and management of bank accounts related to projects. Arrangements from banks and promoters, both, will achieve due transparency in the banking system related to project accounts, and we are putting all efforts to ensure this.”
This initiative by UPRERA reflects a commitment to fostering transparency, accountability, and efficient financial management within the real estate sector.