Project accounts to be seized, if promoter doesn't comply with RERA Act
Only RERA registered projects can avail bank loan
Raipur, 11 September 2019
Chhattisgarh Real Estate Regulation Authority (RERA) Chairman Mr. Vivek Dhand today chaired a meeting of office-bearers of various banking and other financial organizations regarding registration procedure of RERA and Standard Operating Process (SOP), at new circuit house. On the occasion, RERA members namely RK Tamta, Director Institutional Finance Mr. Prabhat Malik and Registrar RERA Ms Anupriya Mishra were also present.
In the meeting, RERA Chairman Mr. Dhand gave instructions regarding RERA account opening. He instructed that each project should have RERA specified account and RERA regular account. 70% of the amount received from allottees should be deposited in RERA specified account and remaining 30% in RERA regular account. If the project cost is more than the total amount received from allotees of plot, building or flat, then entire amount received from allottees should be deposited in RERA specified account. For each project, there should be only one RERA specified account.
Mr. Dhand informed about the operation of RERA specified account that each project should have unique account number of RERA specified account. No loan should be approved against RERA specified accounts. If promoter does not comply with RERA Act, Rule and Regulation, then the accounts of the project would be seized. No cheque book, credit card, debit card etc would be issued for RERA specified account. Withdrawal from RERA specified accounts will be done on the basis of three professional certificates. RERA specified account of any project should not be transferred or closed without authority's approval. Banks have to control the RERA regular account to escrow account. Mr. Dhand also said that banks should provide loans to only RERA approved projects. Allottees of unregistered projects should not be approved. No loans would be recovered from RERA specified accounts. One can send suggestions on firstname.lastname@example.org.He added that home loans for unregistered contracts should not be sanctioned, only registered contracts should be considered for home loan sanction. As per the provisions of RERA Act, registration of all kinds of current and new real estate projects (residential, commercial and mixed plots etc) of 500 sq metre/8 unit or more under RERA is mandatory.