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.
Tags:
Related News Articles
Mumbai's Luxury Real Estate Market Faces Downturn as Buyers Hesitate
The luxury real estate market in Mumbai is experiencing a slowdown as potential buyers become more cautious. Industry insiders provide insights into the factors contributing to this trend.
UP RERA Mandates QR Codes for Realty Projects in Brochures and Advertisements
Uttar Pradesh Real Estate Regulatory Authority introduces QR codes for new real estate projects to ensure transparency and accountability.
Mumbai Property Registrations Reach 13-Year High in 2024
The real estate market in Mumbai has seen a significant surge, with over 1.41 lakh property units registered in 2024, marking a 13-year high. This trend indicates the robust economic activity and the growing appeal of Mumbai's property market as a long-te
Blackstone Acquires 14.3% Stake in Kolte-Patil Developers, Kicking Off Open Offer
Global investment giant Blackstone is set to acquire a 14.3% stake in Kolte-Patil Developers, a prominent real estate company in India, through an open offer. This strategic move underscores Blackstone's commitment to the Indian real estate market.
Mumbai-Based Start-Up Manastu Space Successfully Tests Green Propulsion System in Space
Mumbai-based space start-up Manastu Space has successfully test-fired its home-built green propulsion system, Vyom 2U, on the PSLV Orbital Experimental Module-4 (POEM). The thruster was fired for 30 seconds, tilting the platform by 24 degrees and impartin
Diwali 2024: Real Estate Offers in Delhi NCR - From Gold Coins to Free Lamborghinis
While festive offers are tempting, real estate experts advise homebuyers to scrutinize the fine print and assess the true value of the add-ons.