The Gujarat Real Estate Regulatory Authority (GujRERA) on Monday issued a directive mandating all real estate developers to open separate bank accounts for their projects in scheduled bank branches operating within the state of Gujarat.
The directive was issued after the authority discovered that numerous developers, particularly those in South Gujarat, maintained project-linked bank accounts in branches located in Maharashtra, which could hinder the effective implementation of GujRERA orders.
According to the directive, bank accounts of ongoing real estate projects, which are in branches outside the state, need to be transferred to Gujarat with immediate effect.A senior GujRERA official said, “As per the rule, 70% of the amount realized for the real estate project from the allottees, from time to time, has to be deposited in a separate account maintained in a scheduled bank to cover the cost of construction and land and shall be used only for that purpose.”
All projects seeking registration with the GujRERA are required to open separate RERA bank accounts in scheduled bank branches operating within Gujarat, he added. The official further said that having project accounts in Gujarat-based branches will enable the authority to swiftly enforce orders in cases where action against a developer is necessary.
In its directive, the authority stated that all affected promoters must apply for a bank change request in accordance with the RERA Bank Account Directions, 2018.
