UP RERA tells homebuyers: pay only into the project's collection account, and check it first

Rules and rates as of 13 October 2026.

What UP RERA said

On 12 October 2026 the Uttar Pradesh Real Estate Regulatory Authority urged homebuyers to pay a builder only into the designated collection account of the project, and to check that account's details on the UP RERA portal before transferring any money, according to a UNI report from Lucknow. The authority framed it as a way to keep payments transparent and protect buyers from financial risk.

The UP RERA home page already carries a standing notice: "Allottees are advised to make all payments to the promoter only through the designated Collection Account of the project." It links to two tools: a page listing collection account details for live projects, and a page to report money paid to a builder in any other account. We could not find the 12 October advisory itself on up-rera.in; the press release list we read ends on 23 September 2026.

Why the account matters

The Real Estate (Regulation and Development) Act, 2016, section 4(2)(l)(D), requires that 70% of the amounts a promoter realises from allottees for a project be deposited in a separate account in a scheduled bank, to cover the cost of construction and land, and used only for that purpose. Withdrawals must be in proportion to the percentage of completion, and only after an engineer, an architect and a chartered accountant in practice certify that.

That protection works only if your money actually reaches the project's accounts. A cheque or transfer to a group company, a sister project or a personal account never enters the system, so none of it is ring-fenced for your building.

Three accounts, one entry point

UP RERA's Revised Directions of December 2020 on separate bank accounts, the latest version of the account rules we could read, set up three accounts for each registered project. The promoter must disclose all three to the authority through its website.

Account	What goes in	What it can be used for
Collection account	All payments from allottees, including GST. This is the only one you pay into.	Standing instructions to the bank auto-transfer the money onwards.
Separate (RERA) account	Not less than 70% of the amount collected, excluding GST, plus loans raised to finance the project	Construction and land cost only, withdrawn in line with certified progress
Transaction account (often called the "free" account)	Not more than 30% of the amount collected, excluding GST	Expenses not directly tied to construction, such as refunds to allottees; penalties, interest and compensation are paid from here or the promoter's other funds

The directions also say the collection account must carry the name of the project along with the name of the separate bank account holder. That is a useful check when you see the account name on a demand letter.

UP RERA issued a third revision of these directions on 11 May 2026 (PDF on up-rera.in). It is a scanned document we could not read, so check it, or ask the builder in writing, if a detail above has changed.

Worked example: a ₹60 lakh flat

Say your flat costs ₹60 lakh and the builder raises a demand for ₹6 lakh (10% of the price) at a construction stage. Assume the ₹6 lakh is the instalment before GST; any GST billed on top also goes into the collection account but is left out of the split.

• Into the separate account: 70% × ₹6,00,000 = ₹4,20,000, usable only for construction and land of your project.
• Into the transaction account: at most 30% × ₹6,00,000 = ₹1,80,000.
• Over the full price: 70% × ₹60,00,000 = ₹42,00,000 ring-fenced, and at most ₹18,00,000 free for other uses.

Now say the same ₹6 lakh goes to an account that is not the project's collection account. The ring-fenced amount for that instalment is ₹0, because the auto-transfer never runs. You are then relying on the builder's goodwill to move the money, and the regulator has no automatic record of it.

How to check before you pay

• Note your project's UP RERA registration number from the agreement or the project's page on up-rera.in.
• Open the Details of Collection Account (Live Projects) page and find your project.
• Match the bank, account number and IFSC there with the demand letter and the payee details in your banking app, digit by digit.
• Check that the account name includes the project name. A builder's general company account is not enough.
• If anything differs, do not pay. Ask the builder in writing for the reason and keep the reply.
• Keep the transfer receipt and the builder's acknowledgement for every instalment.

If you have already paid elsewhere

UP RERA has a page titled "Information about payment received by promoter in other than collection account". It asks for the UP-RERA project ID to start. Gather your receipts, bank statements and the demand letter that named the other account before you file.

Separately, section 31 of the Act lets any aggrieved person file a complaint with the authority or the adjudicating officer for a violation of the Act, rules or regulations. If a large sum is involved, or the builder will not move the money into the project accounts, a lawyer familiar with RERA practice can tell you which route fits your case.