Gandhinagar, August 14, 2025: In a decisive move to safeguard homebuyer investments and ensure timely project completion, the Gujarat Real Estate Regulatory Authority (Gujarat RERA) has issued a significant revision to its bank account directives for registered real estate projects. Order No. 103A, dated 14/08/2025, titled the “Gujarat RERA Bank Account Directions, 2025 (First Revision),” introduces stricter controls over project finances and lender obligations.
The revised directions, effective immediately, build upon the existing framework established in December 2024. Their primary objective is to create a robust mechanism for operating dedicated project bank accounts, preventing fund diversion, and enforcing financial discipline to protect consumer interests.
Key Provisions for Banks and Lenders:
The order outlines several critical obligations for banks involved in project or home loan financing:
- Loan Sanction Restrictions: Banks must not sanction project loans for units where a sale agreement or deed has already been executed in favor of a homebuyer before a mortgage deed is signed with the bank. This aims to prevent double financing on the same asset.
- Timely Mortgage Registration: Lenders are mandated to ensure immediate registration of the mortgage with local revenue authorities after executing the mortgage deed for a project loan.
- Due Diligence on Multiple Loans: Banks must exercise heightened due diligence when sanctioning loans for projects where the promoter has already secured financing from another bank (i.e., projects with a pari-passu charge).
- Inviolability of RERA Accounts: In a major protective measure, the order explicitly states that the “RERA Collection Bank Account (100%)” and the “RERA Retention Bank Account (70%)” must remain free from all encumbrances. These accounts cannot be designated as escrow accounts or be subjected to liens, loans, or third-party control by any lender. Crucially, even if a project loan becomes a Non-Performing Asset (NPA), these RERA-mandated accounts cannot be attached. Furthermore, no government authority can seize these funds without a specific order from Gujarat RERA itself.
- Home Loan Disbursement: Banks providing home loans to individual buyers must verify the project’s official RERA Collection Bank Account details on the Gujarat RERA portal before disbursing any loan amount. This ensures buyer funds are routed only to the sanctioned account.
Objective and Impact:
The authority, acting under Section 37 of the RERA Act, 2016, states these measures are necessary to ensure the on-time delivery of apartments and plots and to prevent the diversion of project funds. The directions aim to standardize the operation of project accounts, promote transparency, and hold promoters financially accountable.
This revision is seen as a significant step towards strengthening the financial governance of real estate projects in Gujarat, directly addressing long-standing concerns about fund misuse and providing a stronger safety net for homebuyers’ hard-earned money.
Website: For further details, stakeholders are advised to refer to the official Gujarat RERA portal: https://gujrera.gujarat.gov.in