Seventy per cent of amounts realised from allottees must be deposited in a separate project account for land and construction cost, with withdrawal linked
Finin2min summary
Seventy per cent of amounts realised from allottees must be deposited in a separate project account for land and construction cost, with withdrawal linked to completion and professional certification.
Source review date: 4 July 2026. Read with the official text and the facts of the transaction.
Legal anchors
- Section 4(2)(l)(D)
- State rules, circulars and certificate formats
- MoHUA official FAQs
How to analyse it
- Open a project-specific account.
- Reconcile collections to deposits.
- Obtain engineer, architect and CA certificates before withdrawal.
- Complete annual audit within the statutory period.
Practical illustration
A promoter collects ₹100 crore and deposits ₹70 crore. Withdrawals should follow certified percentage of completion and permitted land/construction cost, not group cash needs.
What can go wrong?
- Calling it a discretionary escrow
- Withdrawing before certification
- Inter-project transfers
Evidence pack
- Bank statements
- Collection reconciliation
- Professional certificates
- Annual audit report
Decision workflow
- Freeze the facts and effective date.
- Identify the controlling Act, rule, notification, circular and jurisdictional overlay.
- Prepare a calculation or exposure note.
- Collect the evidence pack before filing, payment, signing or response.
- Record reviewer conclusion and assumptions.
Quick Q&A
Is the result automatic?
No. Open a project-specific account.
What is the most important control?
Complete annual audit within the statutory period.
What should be escalated?
Calling it a discretionary escrow, especially where money, deadlines, enforcement, personal liability or irreversible transaction steps are involved.
Official source trail
Secondary commentary may help interpretation, but it is not the source of law.