RERA Escrow Account

what will be the consequences if i have not deposited some collection in Rera Escrow Account in Real Estate Sector?
Replies (4)
Quick Summary
This discussion addresses the critical issue of what happens if a property developer fails to deposit collected funds into the mandatory RERA Escrow Account. The RERA regulations stipulate that 70% (or 100% in certain cases) of amounts collected from allottees must be deposited. Funds can be placed in fixed deposits but with specific 'No Lien' conditions. Withdrawal from the account is strictly regulated and requires certification from an architect, engineer, and chartered accountant to confirm project completion and costs.

See the provisions below...


The Promoter shall deposit seventy percent of the amount collected from Allottees in the RERA Account. In the case of a project where the estimated cost to complete the project is higher than the estimated value of sales revenue, hundred percent of the amount collected from the Allottees shall be deposited in the RERA Account.

2. The money lying in the RERA Account can be put in fixed deposits with the bank operating the RERA Account provided it is a ‘No Lien Fixed Deposit’ and no loan can be obtained against or on such Fixed Deposit nor any charge can be created on such Fixed Deposit.

Withdrawal from account

1. As per the second proviso to section 4(2)(l)(D) of the Act which provides that the amounts from the RERA Account shall be withdrawn by the promoter after it is certified by an architect, an engineer and a chartered accountant in practice, that the withdrawal is in proportion to the percentage of completion of the project.

2. The promoter shall have following certificates for withdrawal from bank account :

a) Certificate from the Architect in Form 1 certifying the percentage of completion of construction work of each of the tasks/activity of the building wing of the project

b) Certificate from the Engineer in Form 2 for the actual cost incurred on the construction work of each of the building/wing of the project.

c) Certificate from a practicing Chartered Accountant in practice other than the statutory auditor of the Promoter in Form 3, for the cost incurred and paid on construction cost and the land cost.
Brother this is just a process, and i already know that.
you have copied it from website.
But deposit is mandatory in rera account
I know that, but thats what i am asking, what if i have not deposited!

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