TNRERA Proceedings No. TNRERA/A3/5152/2022 on Designated Bank Accounts
The Tamil Nadu Real Estate Regulatory Authority issued Proceedings No. TNRERA/A3/5152/2022, dated 4 March 2022, on designated bank accounts for real estate projects involving layouts and sub-divisions. It provides that a separate bank account is not required once development work is declared complete by the promoter in Form B and certified by an architect or licensed surveyor in Form-5, with immediate effect.
Purpose
Proceedings No. TNRERA/A3/5152/2022 sets out when the separate bank account requirement ends for real estate projects involving layouts and sub-divisions. The Tamil Nadu Real Estate Regulatory Authority issued the proceedings following orders of the Authority dated 3 March 2022.
General bank account requirement
The Real Estate (Regulation and Development) Act, 2016 requires seventy per cent of amounts received from allottees for a real estate project to be deposited in a separate account maintained with a scheduled bank. The money is intended to cover construction and land costs and must be used only for that purpose.
The Tamil Nadu Real Estate Regulatory Authority does not remove that general requirement throughout the development period. The exemption applies after the specified completion declaration and certification have been provided.
When a separate account is no longer required
Proceedings No. TNRERA/A3/5152/2022 states that a separate bank account is not required for a layout or sub-division project once both of the following have occurred:
- The promoter has declared that the development work is complete in Form B under Rule 3 (4).
- An architect or licensed surveyor has certified completion in Form-5.
The proceedings took immediate effect.
Who is affected
Promoters applying to register real estate projects involving layouts or sub-divisions are directly affected. Architects and licensed surveyors are relevant because their Form-5 certification is one of the conditions for ending the separate account requirement.
Allottees and prospective buyers may also find the proceedings relevant when checking whether a promoter should still maintain a designated account. The document links the end of that requirement to declared and certified completion of development work, rather than merely to the promoter's own statement.
Key points for property checks
- The guidance is limited to real estate projects involving layouts and sub-divisions.
- Completion must be declared by the promoter in Form B.
- Completion must also be certified by an architect or licensed surveyor in Form-5.
- Only after these conditions are met does the Tamil Nadu Real Estate Regulatory Authority state that the separate bank account is not required.
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 every layout promoter need a separate bank account after development is complete?
No. For a layout or sub-division project, the separate account is not required after the promoter declares completion in Form B and an architect or licensed surveyor certifies it in Form-5.
How much of the money collected from allottees normally goes into the separate account?
The proceedings quote the requirement that seventy per cent of amounts realised from allottees must be deposited in a separate account maintained with a scheduled bank.
Is the promoter's completion declaration alone enough?
No. The promoter must declare completion in Form B, and an architect or licensed surveyor must certify completion in Form-5.
Does the exemption apply to all types of real estate projects?
The proceedings specify real estate projects involving layouts and sub-divisions. They do not state that the exemption applies to other project categories.
