RERA Separate Bank Account Provisions
Definition of RERA Bank Account: “RERA Bank Account” means the separate account to be maintained by the promoter in a
Scheduled bank as per section 4(2)(l)(D) of the Act to cover the cost of construction and
the land cost of the project.
General Guidelines:
(i) The Authority recommends that the amount withdrawn from the RERA Account shall be Utilized for the purpose of completion of the same Real Estate Project. However, there is no end use restriction on the amount which is withdrawn from the RERA Account, in Accordance with the provisions of the Act, Rules, Regulations and Directions.
(i) The Authority recommends that the amount withdrawn from the RERA Account shall be Utilized for the purpose of completion of the same Real Estate Project. However, there is no end use restriction on the amount which is withdrawn from the RERA Account, in Accordance with the provisions of the Act, Rules, Regulations and Directions.
Account opening for project registration in RERA:
(i) A RERA Account is to be maintained for each of the registered projects of the Promoter. Details of this project specific account are to be submitted with the project registration application. As such the promoters shall have the RERA Account opened before application
(ii) It shall be required to suffix the term “RERA Account for < name of the project > Real Estate Project” with the name of the RERA Account holder
(iii) Every project shall have only one RERA Account. In the case of multiple promoters, Necessary contractual or legal arrangements should be made by the principal promoter, who is registering the project, to ensure proper operations of RERA Account.
(ii) It shall be required to suffix the term “RERA Account for < name of the project > Real Estate Project” with the name of the RERA Account holder
(iii) Every project shall have only one RERA Account. In the case of multiple promoters, Necessary contractual or legal arrangements should be made by the principal promoter, who is registering the project, to ensure proper operations of RERA Account.
Deposits in Account:
(i) The Promoter shall deposit 70% of the amount collected from Allottees (other
than Pass through charges and Indirect Taxes) in the RERA Account. In the case of a project
where the estimated cost to complete the project is higher than estimated value of sales
revenue, 100 % of the amount collected from the Allottees (other than Pass
through Charges and Indirect Taxes) shall be deposited in the RERA Account.
(ii) The money lying in the RERA Account can be put in fixed deposits with the bank operating the RERA Account provided it is a ‘No Lien Fixed Deposit’ and no loan can be obtained against or on such Fixed Deposit nor any charge can be created on such Fixed Deposit
(ii) The money lying in the RERA Account can be put in fixed deposits with the bank operating the RERA Account provided it is a ‘No Lien Fixed Deposit’ and no loan can be obtained against or on such Fixed Deposit nor any charge can be created on such Fixed Deposit
Withdrawal from Account:
(i) As per the second proviso to section 4(2)(l)(D) of the Act which provides that the amounts
From the RERA Account shall be withdrawn by the promoter after it is certified by an architect, an engineer and a chartered accountant in practice that the withdrawal is in
Proportion to the percentage of completion of the project.
(ii) The promoter shall have following certificates for withdrawal from bank account:
(ii) The promoter shall have following certificates for withdrawal from bank account:
- a) Certificate from the Architect in Form 1 certifying the percentage of completion of construction work of each of the tasks/activity of the building wing of the project
- b) Certificate from the Engineer in Form 2 for the actual cost incurred on the construction work of each of the building/wing of the project.
- c) Certificate from a practicing Chartered Accountant in practice other than the statutory auditor of the Promoter in Form 3, for the cost incurred and paid on construction cost and the land cost.
Reporting to Authority:
(i) Promoter shall submit Forms 1, 2 and 3 to Authority for withdrawal of funds and for
Quarterly return filing compliance.
(ii) The promoter is required to get his accounts audited within six months after the end of every financial year by the statutory auditor of the Promoter’s enterprise and produce the report on the statement of accounts on project fund utilization and withdrawal by Promoter in Form‐5 in accordance with respective state rules.
(iii) In case of a fixed deposit being made from the money lying in the RERA Account, the chartered accountant shall verify that there is no lien or charge on such fixed deposit. The promoter and/or chartered accountant shall obtain the No lien/ charge Certificate in respect to such fixed deposit, from the bank once every three months and submit the same as part of quarterly compliance return.
(iv) The promoter shall append RERA Account passbook copy certified by CA to form 3 upload as part of his quarterly return submission.
(ii) The promoter is required to get his accounts audited within six months after the end of every financial year by the statutory auditor of the Promoter’s enterprise and produce the report on the statement of accounts on project fund utilization and withdrawal by Promoter in Form‐5 in accordance with respective state rules.
(iii) In case of a fixed deposit being made from the money lying in the RERA Account, the chartered accountant shall verify that there is no lien or charge on such fixed deposit. The promoter and/or chartered accountant shall obtain the No lien/ charge Certificate in respect to such fixed deposit, from the bank once every three months and submit the same as part of quarterly compliance return.
(iv) The promoter shall append RERA Account passbook copy certified by CA to form 3 upload as part of his quarterly return submission.
Changing RERA Bank Account:
(i) The Promoter may change the RERA Account from one Bank to another Bank only with
Prior written permission of the Authority.
(ii) For RERA Account change request, Promoter has to make written application along with necessary documents in the following forms:
(ii) For RERA Account change request, Promoter has to make written application along with necessary documents in the following forms:
- a. Application for change in RERA Account as per form RA1
- b. Certificate of account balance from Bank with existing RERA Account as per form RA2
- c. Account Statement / Copy of Passbook of account proposed as new RERA Account
Powers of the Authority on RERA Account:
(i) Upon revocation of the registration, the Authority may direct the bank holding the RERA
Account to freeze or de‐freeze the said account, to facilitate the remaining development
works in accordance with the provisions of sections 7(4)(c) and 8 of the Act.
(ii) The Authority may in the interest of the allottees, enquire into the payment of amounts out of RERA Account as per the provisions contained in sub rule 3 (a) of Rule 8 of the Gujarat Real Estate (Regulation and Development) (Matters Relating to the RERA Rules,2016.)
Okay, here’s a revised one-pager for promoters, incorporating visual elements and aiming for a more engaging presentation:
(ii) The Authority may in the interest of the allottees, enquire into the payment of amounts out of RERA Account as per the provisions contained in sub rule 3 (a) of Rule 8 of the Gujarat Real Estate (Regulation and Development) (Matters Relating to the RERA Rules,2016.)
Okay, here’s a revised one-pager for promoters, incorporating visual elements and aiming for a more engaging presentation:
Gujarat RERA Bank Account Directions, 2025: Promoter’s Handbook
Ensuring Transparency & Project Success
Effective January 1, 2025
The Big Picture: Gujarat RERA’s new bank account directions are designed to streamline fund management, prevent misuse, and ensure timely project completion. Let’s break it down!
Ensuring Transparency & Project Success
Effective January 1, 2025
The Big Picture: Gujarat RERA’s new bank account directions are designed to streamline fund management, prevent misuse, and ensure timely project completion. Let’s break it down!
The 3-Account System: Your Financial Roadmap
[Image: A flowchart depicting the flow of funds between the three accounts]
[Image: A flowchart depicting the flow of funds between the three accounts]
1. RERA Collection Bank Account
- Where allottee payments (excluding indirect taxes & pass-through charges) go.
- Automatic transfer to Retention & Transaction Accounts.
- Think of it as the project’s main collection hub.
2. RERA Retention Bank Account
- 70% of collected funds are deposited here.
- Strictly for land & construction costs.
- Withdrawals need certification (Forms 1, 2, 3).
- No liens, encumbrances, or 3rd-party control.
- This is your project’s investment vault.
3. RERA Transaction Bank Account
- 30% of collected funds go here.
- For expenses beyond land & construction.
- This is your operational expense account.
Promoter’s Fast Facts:
- Account Naming: Use the GujRERA-specified format.
- Example: “ABC Ltd. RERA Collection Bank Account for XYZ Project”
- For Ongoing Projects: Migrate to the 3-account system ASAP.
- Account Location: All accounts must be in a Gujarat-based scheduled bank branch.
- Joint Ventures: Define clear responsibilities for account operations.
- Fund Usage: Stick to the designated purposes for each account.
- Reporting: Keep GujRERA updated on account details, project progress, and fund withdrawals.
- Account Changes: Need GujRERA’s approval.
- Account Closure: Only after project completion and compliance.
- Allottee Guidance: Instruct allottees to pay into the RERA Collection Account.
- Professional Integrity: Ensure accurate certifications.
Key Responsibilities:
- Banks: Must follow RERA guidelines for account operations, auto-sweeps, and withdrawal restrictions.
- GujRERA: Has the power to freeze/de-freeze accounts and investigate fund usage. Stay Compliant, Stay Successful!
Adhering to these guidelines will foster transparency, accountability, and the smooth execution of your real estate projects. Non-compliance can lead to penalties.
