The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has warned homebuyers to deposit booking amounts and instalments only into the authorised collection account of the specific real estate project, after highlighting the financial risk of payments being diverted to other bank accounts.
The authority has advised buyers to verify the project’s collection account on the official UP-RERA portal before making any payment. The step is intended to improve transaction transparency and help protect buyers’ money during the purchase of flats and other real estate units.
According to the advisory reported by Navbharat Times, some builders may ask buyers to transfer money into an account other than the project’s authorised collection account. UP-RERA said such instructions can expose buyers to financial losses and create uncertainty over whether the payment has been properly credited to the project.
The authority has therefore asked buyers not to deposit booking or instalment amounts into an unrelated or unauthorised account. Buyers should first compare the account details provided for payment with the information available on the official RERA portal for the concerned project.
UP-RERA chairman Sanjay Bhus Reddy said homebuyers should follow three precautions: make payments only to the authorised collection account, verify the account details through the RERA portal before transferring money, and complain to the authority if a builder or promoter pressures them to use another bank account.
The warning places responsibility on buyers to complete an account-level verification before transferring funds, while also identifying pressure from a builder or promoter to use a different account as a matter that can be reported to the regulator. The advisory is focused specifically on booking payments and instalments linked to real estate projects.
For buyers who receive payment instructions that do not match the project’s authorised collection account, UP-RERA has advised them to approach the authority immediately rather than proceeding with the transfer. The regulator’s stated next step is to receive complaints from homebuyers facing such pressure or payment-related concerns.
