TNRERA Proceedings No. 3816 of 2025, Maintenance of Bank Accounts in a Scheduled Bank

What the directions govern

Tamil Nadu Real Estate Regulatory Authority Proceedings Number 3816 of 2025 requires promoters to open three designated accounts in one scheduled bank and branch for each real estate project. Account details must be provided when applying for project registration.

For projects developed under a Joint Development Agreement, two sets of three accounts are required, one set for the landowner and another for the promoter, regardless of the number of landowners or promoters.

The three project accounts

• RERA Designated Collection Account (100%): All amounts collected from allottees must first enter this account. No direct debit or withdrawal is allowed. At the end of the same day, an automatic transfer must send 70% to the separate account and 30% to the transaction account. Its details must appear in allotment letters and agreements with existing or prospective buyers.
• RERA Designated Separate Account (70%): This account must be maintained separately for each registered project. It must be free from liens, loans, third party control and other encumbrances. Withdrawals require the prescribed architect, engineer and practising chartered accountant certificates, which must also be uploaded to the Tamil Nadu Real Estate Regulatory Authority portal. Withdrawn money must move to the transaction account and may be used for land cost, construction or development cost, and up to 70% of an allottee refund.
• RERA Designated Transaction Account (30%): Project development transactions must be made through this account. Project loans, promoter contributions and other non-allottee funding must also be credited here. Permitted expenses include refunds up to 30% of the total refund, compensation, interest, marketing, project loan repayment, administration, overheads and penalties imposed by the Authority.

Loans, account changes and closure

Promoters must disclose project finance details, including the lender, borrowing and disbursement information, outstanding amount, mortgage details and a chartered accountant declaration that the loan was used only for the project. New project loans obtained after registration must be disclosed immediately.

Changing any of the three accounts requires valid reasons, prior written approval and the specified declarations and forms. After project completion, balances may be withdrawn only after the Authority issues a completion report and the bank receives it.

Bank and fixed deposit controls

Banks must apply the required account names, automatic transfers and any freezing or defreezing direction issued by the Authority. Withdrawals must be suspended when registration lapses unless project validity has been extended.

Money in the 70% account may enter a linked no lien fixed deposit through automatic sweep. No loan or charge is allowed against it, and principal plus interest must return only to the 70% account.