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CS Executive · Economic, Commercial and Intellectual Property Laws · Real Estate Regulation and Development Law

While applying for registration, Arjun Realty files a declaration about the separate bank account for the project. Which statement matches the declaration required under the RERA Act, 2016?

The promoter must declare that seventy per cent of amounts realised from allottees will be deposited in a separate scheduled bank account, used only for construction and land cost. Withdrawals must be proportionate to completion and certified by an engineer, an architect and a chartered accountant.

  1. AFifty per cent of amounts realised from allottees will be deposited in a separate account, withdrawable at will
  2. BSeventy per cent of amounts realised will be deposited in a separate scheduled bank account, withdrawn in proportion to the percentage of completion after certification by an engineer, an architect and a chartered accountantCorrect
  3. CSeventy per cent will be deposited in a separate account, withdrawn on certification by a chartered accountant alone
  4. DAll amounts realised will be deposited in a separate account and released only on the completion certificate

Explanation

Section 4(2)(l)(D) requires 70% of amounts realised from allottees to be deposited in a separate scheduled bank account, used only for construction and land cost. Withdrawals must be proportionate to the percentage of completion and certified by an engineer, an architect and a chartered accountant in practice. Certification by the chartered accountant alone is insufficient.

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