UP RERA Introduces New Facility to Protect Homebuyers from Unauthorised Payments
The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has launched a new feature on its official portal, allowing homebuyers to report violations by promoters who collect money in unauthorised accounts. This move aims to ensure transparency and protect homebuyers' investments.
Up ReraReal EstateHomebuyersTransparencyAccountabilityReal EstateSep 02, 2025
RERA has issued detailed regulations regarding the operation and maintenance of project accounts by promoters. According to these regulations, promoters are required to receive payments from prospective or existing homebuyers only in the designated Collection Account of the project. This account must be disclosed on the UPRERA website and included in all promotional materials and documents shared with homebuyers, such as booking forms, allotment letters, and brochures.
The regulations also mandate that 70% of the funds collected in the Collection Account be transferred daily to the Escrow Account of the project, which is to be used exclusively for the project's development. This arrangement ensures that the majority of the collected funds are utilized for the intended purpose, thereby protecting homebuyers' investments.
Despite these clear guidelines, UPRERA has noticed instances where some promoters are flouting these norms and collecting payments in unauthorised accounts. This malpractice not only undermines regulatory oversight but also exposes homebuyers to financial risks. To address this issue, UPRERA has introduced a dedicated information-lodging feature on its website, allowing homebuyers to report such violations promptly.
Upon receiving such reports, UPRERA will investigate the matter thoroughly and take strict action against defaulting promoters. This initiative reinforces UPRERA's commitment to consumer protection and accountability in the real estate market.
Commenting on the initiative, UPRERA Chairman Sanjay Bhoosreddy stated, 'The core objective of UPRERA is to ensure a transparent and trustworthy real estate ecosystem in Uttar Pradesh. The mandatory project bank account is a cornerstone of this vision, guaranteeing that funds collected from homebuyers are utilized solely for the respective projects. The misuse of this system by certain promoters is unacceptable and will not be tolerated. By empowering homebuyers to lodge information directly through the UPRERA website, we are strengthening our regulatory mechanisms and sending a strong message of zero tolerance towards malpractice.'
Bhoosreddy also urged homebuyers to remain vigilant and report any instances where they have been misled into making payments into unauthorised accounts. He emphasized the importance of using this new facility to protect their investments and contribute to a fair and transparent real estate sector.
This move by UPRERA is expected to enhance the regulatory framework and provide homebuyers with a robust mechanism to ensure their funds are used appropriately. By fostering transparency and accountability, UPRERA aims to build trust in the real estate market and protect the interests of all stakeholders.
Frequently Asked Questions
What is the new feature introduced by UPRERA?
UPRERA has introduced a dedicated information-lodging feature on its official website, allowing homebuyers to report instances where promoters collect payments in unauthorised accounts.
Why is this feature important?
This feature is important because it helps protect homebuyers from financial risks and ensures transparency and accountability in the real estate sector.
What are the regulations regarding project accounts for promoters?
Promoters are required to receive payments from homebuyers only in the designated Collection Account of the project, which must be disclosed on the UPRERA website and included in all promotional materials and documents.
What happens if a promoter violates these regulations?
UPRERA will investigate the matter thoroughly and take strict action against defaulting promoters, reinforcing its commitment to consumer protection and accountability.
How can homebuyers report violations?
Homebuyers can report violations by using the dedicated information-lodging feature on the UPRERA website.
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