Canara

• Real Estate Regulatory Authority (RERA) Act 2016 was launched on the 1st of May 2017. It is an act passed by the cabinet to establish the Real Estate Regularity Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.
• RERA Current Account scheme is a combination of three current accounts viz.
  • CA RERA collection account (Pooling account).
  • CA Project’s RERA designated account.
  • Regular Current account of builder.
• Each project shall have an individual collection account.
• RERA collection account & designated account shall not be provided with regular current account operating features such as – debit card / credit card, cheque book, etc.
• Customers may have only view access under internet banking.
• On receipt of collection proceeds of the project amount, deposited by the customer in the RERA collection account (Pooling account), seventy percent (70%) of the deposited amount in project Collection Account will be automatically remitted to project’s RERA Designated Current Account (for the purpose of construction and land cost), remaining thirty percent (30%) of the deposited amount will be automatically remitted to customer’s regular Current Account (as specified in the Request Letter) on a real time basis. However, realtor may decide for transfer of 30 % of collections to their operating CC / OD account instead of regular current account.

As per section 4(2)(I)(D) first and second proviso, the realtor is required to withdraw the amounts from the Project’s RERA designated Current account, to cover the cost of project, in proportion to the percentage of completion of project. In addition, the realtor is permitted to withdraw from the Project’s RERA designated Current account to their (Builder’s) Current Account after it is certified by an engineer, an architect and a chartered account in practice that the withdrawal is in proportion to the percentage of completion of the project.

As per section 4(2)(I)(D third proviso, the realtor required to get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilized for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project.

The balance in project collection account will be zero at the end of each day.