TNRERA Bank Direction for Extended Projects
The Tamil Nadu Real Estate Regulatory Authority, through Letter No. TNRERA/A2/ /2025, which has no filled-in date, directs the branch manager handling the separate account of a real estate project whose validity is being extended. It requires an additional 20% of amounts received from allottees to be deposited in that account, over and above the 70% stipulated in the Act, and restricts withdrawals, transfers and closure.
What the letter covers
Letter No. TNRERA/A2/ /2025 of the Tamil Nadu Real Estate Regulatory Authority, with no filled-in date, concerns a promoter who has applied to extend the validity of a registered real estate project because the project is not yet complete. The project name, survey numbers, registration number, bank account number, original completion date and extended validity date are blank in the supplied text.
The letter is addressed to the branch manager of the bank where the promoter maintains the project's separate account. It states that the Tamil Nadu Real Estate Regulatory Authority has decided to extend the project's validity subject to conditions imposed in the interests of allottees.
Who may be affected
The bank direction is relevant to:
- A promoter whose project validity is being extended.
- The bank branch maintaining the promoter's separate project account.
- Allottees whose payments are received by the promoter.
- The engineer, architect or practising chartered accountant who certifies withdrawals.
Because the identifying fields are unfilled, the supplied letter does not show which particular project, promoter or bank account is covered.
Key account requirements
Letter No. TNRERA/A2/ /2025 sets out the following conditions:
- An additional 20% of amounts received by the promoter from allottees from time to time must be deposited in the separate account maintained under Section 4(2)(2)(D) of the Real Estate (Regulation & Development) Act, 2016.
- The additional 20% is over and above the 70% amount stipulated in the Act.
- Money in the separate account must be used to cover construction costs as stipulated in the Act.
- The promoter may withdraw money to cover project costs only in proportion to the percentage of project completion.
- A practising engineer, architect or chartered accountant must certify that each withdrawal is proportionate to the percentage of completion.
Restrictions on the bank account
The Tamil Nadu Real Estate Regulatory Authority directs the bank not to close or transfer the account without the Authority's consent. The account may be closed only when a completion report issued by the Tamil Nadu Real Estate Regulatory Authority is produced.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does the additional 20% replace the existing 70% deposit requirement?
No. Letter No. TNRERA/A2/ /2025 states that the additional 20% is over and above the 70% stipulated in the Act.
Can the promoter withdraw money from the separate account at any time?
No. Withdrawals must be proportionate to the percentage of project completion and certified by a practising engineer, architect or chartered accountant.
When can the bank close the project account?
The bank may close the account only when a completion report issued by the Tamil Nadu Real Estate Regulatory Authority is produced. The bank is also directed not to close or transfer the account without the Authority's consent.
Which project does this letter apply to?
The supplied text does not identify a specific project. The project name, survey numbers, registration details, account number and relevant completion dates are left blank.
