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

Telangana Real Estate Regulatory Authority has issued a Circular to promoters or allottees, lenders etc., for mandatory deposit of money into the RERA designated bank account

04-Sep-2023 | No. 989/TSRERA/2023.

Telangana Real Estate Regulatory Authority has issued a Circular to promoters or allottees, lenders etc., for mandatory deposit of money into the RERA designated bank account, effective from 4th September, 2023. By virtue of the Circular, the Authority has issued the directions in the interest of the promoters, project, allottees, lenders etc., as below: 1. The project promoter must deposit the whole amount borrowed for the project into the designated account for the project, and the funds thus deposited may only be used and withdrawn for the development of the specific project. 2. In the event that the project's promoter borrows funds for it and registers the project phase-by-phase in accordance with the explanation in section 3(2) of the Act, the promoter must divide and allocate the funds to the various phases and report this information during the quarterly updates along with the bank statement and the certificate from a chartered accountant by way of an annexure. 3. In the case of already-existing projects, where the promoters have borrowed money for the project's purpose but have not used all of it, they must deposit the unused portion of the borrowed funds into the designated RERA account within three months of the date of this notification. 4. The Promoters must conduct an audit of the project's financial records, and a chartered accountant must certify the results on a Form 7 that this Authority has established. 5. In order to enforce this notification, the authority may issue a notice to the promoters requesting any information or documents. For more details, kindly refer to the attached document.

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