Gujarat RERA introduces new banking rules for developers

Dated on: Sunday 29th December 2024

The Gujarat Real Estate Regulatory Authority (GujRERA) has introduced new banking rules, effective January 1, 2025, to enhance financial transparency in real estate projects. Developers must maintain three separate bank accounts for each project: a RERA Collection Bank Account for buyer payments, a RERA Retention Bank Account for construction and land costs (70% of funds), and a RERA Transaction Bank Account for other expenses (30% of funds). Withdrawals from the retention account require certified documents uploaded to the GujRERA portal.Banks are mandated to implement auto-sweep transfers in a 70:30 ratio and restrict cheque books, debit cards, and online banking for the collection account to prevent misuse. Non-compliance could result in penalties of up to 5% of the project cost. These measures aim to improve financial discipline, ensure proper fund utilization, and protect homebuyers’ interests in Gujarat's real estate sector.