Changing the separate bank account of the Project as per Real Estate Rules (Maintenance of Separate Bank Account) Directions 2020 in UP

The separate account of the project is one of the most important information relating to the project disclosed by the promoter on the website of the Authority and such will not be permitted to be changed under the normal conditions. The Authority, in the overall interest of the allottees and the proper management of the finances of the project, if satisfied by the justification given by the promoter in its application for change of the separate account of the project in a manner given hereinbelow, may permit to change the separate account of the project as declared on its website at the time of the Registration of the project.

(i) The Authority may consider permitting a change in the separate account of the project under the following circumstances:

a. The promoter has not declared a separate account of the project at the time of registration of the project with the Authority.

b. The bank account declared on the website of the Authority is common to more than one project of the promoter.

c. The bank account declared on the website of the Authority is a general collection account of the promoter and not a separate account of the project as clarified in these directions.

d. The bank account is with a bank located outside the district where the project is located. For ease of operation, the promoters may be allowed to retain the accounts of the ongoing projects located in NCR in banks located in Delhi and NCR.

e. The promoter is availing a project finance loan for the construction of the project from another bank and such other bank insists for the opening of the project account with it. However, such other banks can not be allowed to have any type of lien or charge on the project account and in case it is discovered at any stage that the promoter has violated these provisions, it will be liable to a penalty up to five percent of the cost of the project. Further, the Authority may also revoke the registration of the project as provided under section 7 of the Act.

f. The Reserve Bank of India has placed restrictions on the operation of the bank account at a particular bank.

g. Any other reason not foreseen in these directions but deemed sufficient by the Authority.

(ii) The promoter can submit the application for the change of the separate account of the project in the following manner along with the documents specified:

a. Application for change of separate account in form RA-3 as given at the end of these directions.

b. Certificate of account balance duly issued by the bank holding the existing account of the project in form R A.-4 given under these directions.

c. Account Statement / Copy of Passbook of the bank account proposed as the new separate account of the project.

d.The annual audit report of the project

e. A notarized affidavit of the promoter in form RA -1

f. The promoter shall submit fund transfer compliance letter as per form RA-5 (confirmation letter for change in a separate account) along with Form  RA-6 (certificate of fund transfer from the bank with a new separate account of the project) and the proof the operation of the existing separate account of the project has been stopped and all the allottees accordingly informed.