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Property Related Laws Tamil Nadu Ministry of Housing and Urban Affairs Real Estate (Regulation and Development) Act, 2016

Directions on Maintenance and Operation of Three Designated Bank Accounts for Real Estate Projects under RERA

12-Dec-2025 | TNRERA/A3/3816/2025

The Tamin Nadu authority has issued comprehensive directions to strengthen financial transparency and monitoring of real estate projects. These directions shall come into force for all applications received on or after 01.01.2026, including resubmission applications. These directions mandate promoters to open and maintain three designated bank accounts a RERA Designated Collection Account (100%), RERA Designated Separate Account (70%), and RERA Designated Transaction Account (30%) in the same scheduled bank and branch for each registered project. The directions clearly prescribe the flow of funds, permitted withdrawals, utilization of amounts, reporting of project loans, obligations of banks, conditions for change and closure of accounts, and provisions for transferring funds from the Separate Account to fixed deposits under strict safeguards. Special provisions have also been laid down for projects developed under Joint Development Agreements (JDA). The objective of these measures is to ensure that amounts collected from allottees are used strictly for the concerned project, to curb diversion of funds, and to enhance transparency, accountability, and protection of home buyers interests under the RERA framework.

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