Photo of Ashish Jain

Partner in the Real Estate Practice at the Delhi office of Cyril Amarchand Mangaldas. Ashish has over eleven years of experience in the Real Estate Sector. His areas of work within the sector extend to conveyancing, development of mixed used projects, redevelopment projects, warehouse and logistics, retail and hospitality. In addition to the above, he also advises on real estate aspects of corporate and financing transactions in sectors such as construction and development, special economic zones, power, cement, and many more. He can be reached at ashish.jain@cyrilshroff.com

 

 

 70% Conundrum - Haryana RERA

There is a requirement under the Real Estate (Regulation and Development) Act, 2016 (Act) to keep aside 70% of receivables from allottees in a separate, designated bank account (RERA Account). This has, from the outset, been viewed as a measure of great reform that would prevent siphoning of funds and ensure that money collected for the purpose of a particular project is, in fact, used for that project. However, the manner and method of utilisation and withdrawal of money lying in the RERA Account has always been a matter for considerable discussion and debate.

Illustratively, the Uttar Pradesh Real Estate Regulatory Authority has, in April 2019, directed banks not to adjust interest payments against the money that is required to be deposited in the RERA Account. This issue has recently come to the fore and become a matter of serious deliberation in Haryana.  
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