GujRERA Orders Developers to Open Separate Bank Accounts for Projects in Gujarat
The Gujarat Real Estate Regulatory Authority (GujRERA) has directed all real estate developers to open separate bank accounts for their projects in the state.
GujreraGujarat Real Estate Regulatory AuthorityReal Estate DevelopersSeparate Bank AccountsScheduled Bank BranchesReal EstateSep 25, 2024
According to the order, developers will have to open separate bank accounts for each project they undertake in Gujarat. The accounts will have to be opened in scheduled bank branches, and the developers will have to maintain a separate account for each project.
The order is in line with the Real Estate (Regulation and Development) Act, 2016, which mandates developers to maintain separate bank accounts for each project. The Act also requires developers to deposit 70% of the amount collected from homebuyers in a separate account, which can only be used for construction purposes.
GujRERA has also directed developers to provide details of the separate bank accounts to the authority. The developers will have to submit the details of the accounts, including the account number, branch name, and IFSC code, to GujRERA within 30 days of opening the account.
The move is expected to bring transparency and accountability in the real estate sector in Gujarat. It will also help in protecting the interests of homebuyers, who often complain about developers misusing their funds.
In a related development, GujRERA has also directed developers to comply with the RERA Bank Account Directions, 2018. The directions mandate developers to maintain separate bank accounts for each project and to deposit 70% of the amount collected from homebuyers in the account.
Developers who fail to comply with the order will face action from GujRERA. The authority can impose penalties, cancel the registration of the project, or even revoke the license of the developer.
The move is seen as a major step towards regulating the real estate sector in Gujarat. It will help in protecting the interests of homebuyers and ensuring that developers comply with the rules and regulations.
Information
The Real Estate (Regulation and Development) Act, 2016, was enacted to regulate the real estate sector in India. The Act mandates developers to maintain separate bank accounts for each project and to deposit 70% of the amount collected from homebuyers in the account.
GujRERA is the regulatory authority for the real estate sector in Gujarat. It was established under the Real Estate (Regulation and Development) Act, 2016, to regulate the real estate sector in the state.
Frequently Asked Questions
What is the purpose of GujRERA's order to open separate bank accounts for projects?
The purpose of the order is to ensure transparency and accountability in the real estate sector in Gujarat.
What is the deadline for developers to open separate bank accounts for their projects?
Developers have to open separate bank accounts for their projects within 30 days of the order.
What is the penalty for developers who fail to comply with the order?
Developers who fail to comply with the order will face action from GujRERA, including penalties, cancellation of registration, or revocation of license.
What is the significance of the RERA Bank Account Directions, 2018?
The directions mandate developers to maintain separate bank accounts for each project and to deposit 70% of the amount collected from homebuyers in the account.
How will the move benefit homebuyers?
The move will help in protecting the interests of homebuyers by ensuring that developers comply with the rules and regulations and do not misuse their funds.
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