Allottees Can Raise Grievances With RERA Against Promoters Receiving Money in Non-Project Account

Lucknow/Gautam Buddh Nagar, September 2, 2025: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) portal offers a new facility enabling allottees to raise issues if a promoter collects money in any account which is not the collection account of the project declared on the website. The facility aims to safeguard the interests of homebuyers and ensure complete transparency and accountability in financial dealings in the real estate sector.

RERA has issued detailed regulations regarding the operation and maintenance of project accounts by promoters. Per regulations, the promoter shall receive the money from prospective or existing allottees only in the project’s collection account. It is also mandatory for the promoter to disclose this account on the UP RERA website for the information of all homebuyers.

UP RERA has also made it mandatory for the promoter to share the project’s collection account details in promotional materials and all documents, like the booking form, allotment letter, BBA, demand notices, brochures, etc. This arrangement ensures that 70 per cent of the amount collected into this account is transferred to the project’s escrow account through auto-sweep daily and is utilised only for the project’s development work, ensuring timely completion of the project and resultant delivery of units.

Despite these clear guidelines, instances have come to the notice of UP RERA that some promoters are collecting payments in unauthorised accounts. This malpractice not only undermines regulatory oversight but also exposes homebuyers to financial risks.

To counter this, UP RERA has introduced a dedicated information-lodging feature on its website where allottees can report such violations. Upon receiving such information, UP RERA will investigate the matter and take strict action against defaulting promoters, reinforcing its commitment to consumer protection and accountability in the real estate market.

“The core objective of UPRERA is to ensure a transparent and trustworthy real estate ecosystem in Uttar Pradesh. The mandatory project bank account is a cornerstone of this vision, guaranteeing that funds collected from homebuyers are utilised solely for the respective projects,” Sanjay Bhoosreddy, Chairman, UP RERA, said.

“The misuse of this system by certain promoters is unacceptable and will not be tolerated. By empowering allottees to lodge information directly through the UP RERA website, we are strengthening our regulatory mechanisms and sending a strong message of zero tolerance towards malpractice.”

He urged all stakeholders, especially homebuyers, to actively use this facility to safeguard their investment and help create a fair and transparent real estate sector.

UPRERA remains committed to promoting a culture of compliance and protecting the interests of homebuyers in the state. He also called upon home buyers to remain vigilant and, in case, they have been misled by the promoter to pay to another account, they should promptly lodge the information using the link https://www.up-rera.in/frm_OtherAccount_DetailsofProject.aspx on the Authority’s portal.