The Gujarat Real Estate Regulatory Authority (GujRERA) issued directives for the opening, maintenance, and operation of three designated project bank accounts for every registered real estate project in Gujarat.
These accounts are:
1. RERA Collection Bank Account: To collect funds from the allottees.
2. RERA Retention Bank Account: To hold the retained funds and meet specific project expenses as prescribed under the regulations.
3. RERA Transaction Bank Account: To meet expenses not directly related to project construction, such as legal fees, administrative costs, etc.

These accounts are meant to ensure that funds from the project are used exclusively for the project’s development and safeguard the interests of the allottees. Specific rules are provided for handling funds, including the prohibition of loans or advances against the amounts in these accounts, and detailed guidelines on withdrawals, such as:

• 70:30 ratio for fund allocation: A fixed portion (70%) of the funds collected from allottees must be transferred to the RERA Retention Bank Account, while the remaining 30% goes to the Transaction Bank Account.
• Fixed deposits: Any surplus in the RERA Retention Bank Account may be converted into fixed deposits, which must be free from any encumbrances, including liens or charges.
• Refunds and cancellations: Funds related to cancellation amounts (e.g., refunding the allottee after cancellation) are allowed to be paid from the Retention Bank Account, subject to limits.
• Interest and penalties: Interest or compensation paid to the allottees, or penalties imposed by

GujRERA, cannot be paid from the Retention Bank Account, but instead must be withdrawn from the Transaction Bank Account.
The promoter is also required to regularly report financial details, including bank statements, fund withdrawals, and loans, on the GujRERA portal.

Furthermore, the directions set strict compliance for the banks involved, mandating that the RERA accounts be kept free from encumbrances, and no withdrawals are allowed unless they are in line with the guidelines. Banks are required to verify the limit of withdrawals with the certification from Chartered Accountants. Any changes to the RERA accounts, including a switch from one bank to another, must receive prior approval from the authority.

Non-compliance with these directions can lead to penalties under the Act, ensuring that the funds are properly handled and used solely for the intended project purposes.