UP RERA warns developers over payments in unauthorised accounts

Lucknow, Sep 3 (PTI) The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has raised concerns over some developers allegedly flouting norms by collecting homebuyers' payments into unauthorised accounts.

RERA has urged allottees to promptly report such violations through its dedicated grievance platform.

Officials said the malpractice not only undermines regulatory oversight but also puts homebuyers at financial risk. The regulator has launched a facility on its official website, allowing allottees to lodge complaints if a promoter collects payments into an account other than the designated project Collection Account.

"The misuse of this system by certain promoters is unacceptable and will not be tolerated," UP RERA Chairman Sanjay Bhoosreddy said in a statement on Tuesday, adding that the authority is committed to consumer protection and transparency in the real estate sector.

Under RERA norms, developers are required to receive payments only into the Collection Account specified for each project, and disclose this information in promotional materials and buyer documents.

Seventy per cent of the funds collected in this account are transferred daily to an escrow account and used solely for project development, ensuring timely completion and delivery, the authority said.

Despite these guidelines, the regulator noted several instances of promoters diverting payments, prompting the introduction of the reporting feature to strengthen regulatory oversight.

Bhoosreddy urged homebuyers to remain vigilant and use the facility to safeguard their investments, stressing the regulator's "zero tolerance" stance on malpractice. PTI KIS HIG HIG