UP RERA Asks SLBC to ensure bank a/c management of real estate projects 

Lucknow/ Gautam Buddh Nagar: In order to ensure banking system related to project bank accounts more stringent and transparent, U.P. RERA has written a letter to State Level Bank Committee (SLBC) to ensure management of bank accounts of real estate project according to the directions of Reserve Bank of India (RBI) and RERA Act. Apart from opening 3 bank accounts for all new real estate projects, U.P. RERA has asked SLBC to issue directions to banks/financial institutions on following points:

1. In the process of opening bank accounts of real estate projects, promoters will give standing instruction to the banks to deduct 70 and 30 per cent, not more than this, of amount automatically from collection account and deposit them in separate and transaction account respectively.

2. Bank account will be operative only in the name of main promoter and to ensure utilization of amount of separate account in construction and development of the particular project, banks would not facilitate debit card, cheque book and net banking facility to the promoter. 

3. Ensuring execution of above points, branch of the bank will send the information to U.P. RERA office and the promoter will upload it on portal, www.up-rera.in 

Banks have to ensure transaction from separate account of project in equal ratio of construction being completed in the project and this has to be certified by engineer, architect and charted accountant of the promoter’s organization.  

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Uttar Pradesh RERA Chairman Sanjay Bhoosreddy said, “We have taken initiative to ensure utilization of it solely in construction and make a transparent system of opening and management of bank accounts related to projects. Arrangement from banks and promoters, both, will achieve to bring due transparency in the banking system related to project accounts and we are putting all efforts to ensure this.”