The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has introduced a new feature on its official web portal, empowering homebuyers to raise grievances against promoters who collect money in accounts other than the declared project Collection Account.
The move is aimed at safeguarding homebuyers’ interests and ensuring transparency in financial dealings within the real estate sector.
According to UPRERA’s regulations, promoters must collect payments exclusively through the Collection Account of the project, details of which are mandatorily disclosed on the UPRERA website. Additionally, promoters are required to display these account details on all promotional materials and key documents, including booking forms, allotment letters, builder-buyer agreements, demand notices, and brochures.
Under the rules, 70% of funds collected in the Collection Account are auto-swept daily into an Escrow Account, which can only be used for project development. This framework ensures timely project completion and delivery of units to homebuyers.
Despite these guidelines, UPRERA has noted instances where some promoters have bypassed the system by collecting money in unauthorized accounts, exposing buyers to financial risks and undermining regulatory oversight.
To curb this malpractice, UPRERA has rolled out a dedicated reporting mechanism where allottees can immediately lodge complaints online. The authority has assured that each case will be thoroughly investigated and strict action will be taken against defaulting promoters.
Commenting on the initiative, UPRERA Chairman Shri Sanjay Bhoosreddy said:
“The core objective of UPRERA is to ensure a transparent and trustworthy real estate ecosystem in Uttar Pradesh. The mandatory project bank account is a cornerstone of this vision, guaranteeing that funds collected from homebuyers are utilized solely for the respective projects. The misuse of this system by certain promoters is unacceptable and will not be tolerated. By empowering allottees to lodge information directly through the UPRERA website, we are strengthening our regulatory mechanisms and sending a strong message of zero tolerance towards malpractice.”
He further urged homebuyers to remain vigilant and report any such violations using the official link: Report Unauthorized Accounts.
UPRERA reaffirmed its commitment to consumer protection and urged stakeholders to use this facility to build a fair and transparent real estate sector in Uttar Pradesh.
