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Property Related Laws Goa Department of Town and Country Planning Real Estate (Regulation and Development) Act, 2016

Only One Separate bank account for deposit of 70% of the sale proceeds under Joint development agreement

09-May-2023 | F.No: 1/RERA/Circulars/2019/317

Goa Real Estate Regulatory Authority has issued a Circular regarding Landlord/Investor having area revenue share in real estate project to be treated as promoter and opening of only one separate bank account by such landowner /promoter or investor /promoter who is entitled to a share of the total area developed should also open a separate bank account for deposit of 70% of the sale proceeds realized from the allotees of their share, effective from 9th May 2023

By virtue of the circular, in partial modification of Circular No.11/35/2017-DMA/3390(A) dated 13/02/2018 on the subject it has been henceforth decided as follows: -
(i) Under the joint development agreement route, wherein the landowner contributes land for construction of real estate project and the promoter who invests money for construction of the real estate project shall be deemed to be the promoters and shall be jointly liable for functions and responsibilities specified.
(ii) Only one separate bank account for the project will be opened by the promoter in a Scheduled Bank to park the seventy percent of the amount realized for the real estate project from the allottees from time to time to cover the cost of construction and the land cost and shall be used only for that purpose. The operation of such account should be as per provisions under Section 4(2)(1)(D) of the Real Estate (Regulation and Development) Act,
2016.
(iii) The landowner/promoter even though entitled to a share of the total area to be developed under Joint Development Agreement route shall not be permitted to open a separate bank account.

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