Gujarat RERA Bank Account Directions 2025Gujarat RERA Bank Account Directions 2025
Overview
Before applying for project registration under the Gujarat Real Estate Regulatory Authority (RERA), promoters must open the following three bank accounts in a single scheduled bank branch operating in the State of Gujarat:
- RERA Collection Bank Account of the Project
- RERA Retention Bank Account of the Project
- RERA Transaction Bank Account of the Project
Below are the detailed guidelines for the maintenance and operations of these three bank accounts.
A. RERA Collection Bank Account of the Project
Deposits:
The entire amount received from allottees must be deposited in this account, excluding indirect taxes such as GST, stamp duty, registration charges, and any Pass-Through Charges (if applicable).
Restrictions on Withdrawals:
The bank holding this account must ensure that no debits or withdrawals are permitted through cheque, debit card, credit card, internet banking, demand drafts, or any other payment methods. The only permitted transaction is an auto-sweep transfer, which divides the funds as follows:
- 70% of the amount collected from allottees should be transferred to the RERA Retention Bank Account of the Project.
- 30% of the amount collected should be transferred to the RERA Transaction Bank Account of the Project.
B. RERA Retention Bank Account of the Project
1. Deposits:
A minimum of 70% of the amounts realized from allottees, received in the RERA Collection Bank Account, must be deposited in this account via the auto-sweep transfer facility. These funds are to cover the cost of construction and land acquisition and must be used solely for these purposes.
2. Withdrawals:
The funds in this account can only be used for the following project-related expenses:
- Land Cost
- Development Cost or Cost of Construction
- Interest on loans (except loans taken from partners)
- Refunds to allottees in case of cancellations, up to 70% of the amount paid
Additional Guidelines:
- Any excess funds in the RERA Retention Bank Account can be converted into fixed deposits with the same bank managing all three RERA Designated Bank Accounts.
- Such fixed deposits must be no-lien deposits, meaning no loans or charges can be created against them.
C. RERA Transaction Bank Account of the Project
1. Deposits:
A maximum of 30% of the amounts realized from allottees, received in the RERA Collection Bank Account, must be deposited in this account.
2. Withdrawals:
The funds in this account can be used for the following purposes:
- Refunds to allottees in case of cancellations (minimum 70% of the amount paid)
- Payment of interest or compensation to allottees
- Payment of any penalties imposed by the RERA authority
Conclusion
These guidelines ensure transparent and efficient management of project finances, safeguarding the interests of both promoters and allottees. By adhering to these directives, promoters can maintain financial discipline and compliance with Gujarat RERA regulations.