AHMEDABAD: Gujarat Real Estate Regulatory Authority (GujRERA) has announced new banking rules to be implemented from Jan 1, 2025. According to the new rules, developers will need to maintain three bank accounts for a project to ensure transparency in financial transactions.
All ongoing projects will need to migrate to this three-tier account system according to the rules. The authority has also directed banks to restrict issuance of cheque books and debit cards for the RERA collection bank account, where the entire payment by the buyers will be deposited.
GujRERA sources stated it was observed that many banks in various districts allowed developers to withdraw funds without verification of project progress certificates from professionals. Therefore, to strengthen the system, new rules will be implemented.
As per the new rules — Gujarat RERA Bank Account Directions – 2025— developers will have to open a RERA collection bank account for receiving collections from the allottees as per the agreement for sale, including amenities and other charges but excluding pass-through charges and indirect taxes.
The second account, the RERA retention bank account, will be a separate account where 70% of the amount received in the RERA collection bank account is to be deposited. This amount is exclusively for covering the cost of construction and land, as prescribed under Rule 5 of the Gujarat Real Estate (Regulation and Development) General Rules, 2017.
The third account, the RERA transaction bank account, will be maintained by the promoter to transfer up to 30% of the total collection received in the RERA collection bank account. This account is used for expenses other than construction and land costs.
According to GujRERA sources, withdrawal from the RERA retention bank account will require certification in Form 1 (Architect Certificate), Form 2 (Engineer Certificate), and Form 3 (CA Certificate) uploaded on the GujRERA portal. Promoters maintaining RERA accounts in branches outside Gujarat must transfer these accounts to branches operating within the state.
GujRERA also stated that banks will have to implement auto-sweep transfers (70:30 ratio) from the RERA collection bank account to the other two accounts.
Additionally, the authority has prohibited the issuance of cheque books, debit cards and online banking services for the RERA collection bank account. If the promoter provides false information or contravenes the Act or fails to comply with orders or directions of the authority, they are liable for a penalty of up to 5% of the project cost, according to the new rules.
