How the RERA escrow rule is meant to protect your booking money
Developers must park a share of buyer payments in a project account. Here is what that does and does not guarantee.
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Under the Real Estate (Regulation and Development) Act, 2016, promoters must deposit 70% of money collected from buyers into a separate bank account and use it only for that project's construction and land cost.
The rule is designed to stop developers from diverting funds to new launches while older projects stall. Withdrawals are linked to a professional's certificate of project progress.
It is not a guarantee of delivery: delays can still happen, but the money trail is easier for the regulator to audit.
What this means for you
Before paying a booking amount, check the project on your state RERA website and ask for the escrow account details and latest quarterly update.