UP RERA Issues Strict Norms for Project A/c Name Change and Its Closure (Part 2)

Lucknow/Gautam Buddh Nagar: UP RERA issued revised Real Estate Project Banks Account Directions on November 29, 2023 also providing the details relating to the opening, operation, reporting, audit, change and closure of such accounts.

Sanjay Bhoosreddy, Chairman-, UP RERA said that “the bank accounts of the project are most sacrosanct to the project and the Authority has laid down detailed guidelines for these accounts with a view to protect the interests of the consumers and ensure and accountability of the promoter. He further said that the Authority is conscious of the fact that sometimes change in the accounts may be necessitated and there could be conditions when even forensic audit of the accounts may be necessary and that the Authority has laid down procedure for all such activities.”

Audit of Project Account: The promoter has to get the project accounts audited and upload the Audited Balance Sheet on the website of the Authority within six months of the end of financial year. In case of serious discrepancies or complains the Authority shall get the accounts of the project audited by an Auditor on the panel of the Authority. The cost of such audit shall be borne by the promoter.

Change of the Project Account: Authority may permit the promoter to change project account under exceptional circumstances only if it is satisfied with the grounds for change given by the promoter through an online application on the portal of the Authority. The changes may be considered on such grounds as:

• If the Promoter had not declared the bank account of the project at the time of the registration of the project with the Authority.

• If the bank account declared on the website of the Authority is common to more than one project of the Promoter.

• If the bank account declared on the website of the Authority is a general collection account of the Promoter and not a bank account of the project as clarified in these directions.

• If the bank account is with a bank outside the district where the project is located. 

• If the bank has been completely taken over by a new banking institution or a fresh project finance is availed of by the promoter for the entire project.

Closure of the Project Account: The promoter may apply online on the portal of the Authority for its permission for closure of the project account after the completion of the project along with a copy of the following documents:

• Completion certificate from the competent authority.

• Certificate by Architect in Form RA-5.

• Final REG Form-3 duly certified by the Chartered Accountant. 

• An affidavit by the Promoter that it has paid all the outgoings as per section 11 (4) (g) of RERA.

The Authority may grant permission to the Promoter to close the separate account of the project and withdraw the balance amount if satisfied after scrutiny of the application. However, the Promoter will not be absolved of any responsibilities undischarged by it and not disclosed by it to the Authority at the time of the application for the closure of the separate account of the project