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Introduction: A Major Step Towards Financial Transparency in Real Estate

The real estate sector in India has long struggled with issues such as diversion of funds, delayed possession, stalled projects, and lack of transparency. While the Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to address these problems, practical loopholes continued to exist in how project funds were collected and utilised.

Recognising this gap, the Tamil Nadu Real Estate Regulatory Authority (TN RERA) has introduced a path-breaking financial control mechanism. Through an order dated 12 December 2025, TN RERA has mandated that every registered real estate project must operate three separate and designated bank accounts. This requirement applies to all project registrations and resubmissions received from 1 January 2026 onwards.

This move is aimed squarely at protecting homebuyer money, preventing cross-project fund diversion, and ensuring that money collected for a project is used only for that project.

Background: What RERA Already Mandates and Why It Was Not Enough

The Existing Legal Position Under RERA

Section 4(2)(l)(D) of the RERA Act requires promoters to:

1. Deposit 70% of the amounts realised from allottees

2. In a separate bank account

3. To be used only for land cost and construction cost

4. With withdrawals permitted only after certification by:

   1. Architect

   2. Engineer

   3. Chartered Accountant

This provision was designed to ensure project-specific fund usage and to prevent promoters from diverting money to other projects.

The Practical Problem Identified by TN RERA

Despite this legal safeguard, TN RERA observed a critical gap at the collection stage:

1. Homebuyer payments were often received in ordinary bank accounts

2. These collection accounts were not monitored by the Authority

3. Promoters frequently:

   1. Used one common collection account for multiple projects

   2. Transferred funds to the RERA account after delays

   3. Moved money between projects before regulatory oversight applied

TN RERA clearly noted that “there is no mechanism to monitor the collection account”, which defeated the very purpose of RERA.

The TN RERA Order of December 12, 2025: What Has Changed?

To close this loophole, TN RERA has introduced a three-tier banking system for every real estate project.

Applicability of the New Rule

1. Applies to:

   1. All new project registrations

   2. All resubmission applications

2. Effective for applications received on or after 1 January 2026

3. Mandatory compliance for:

   1. Promoters

   2. Developers

   3. Joint development projects

The Three Mandatory Bank Accounts Explained Simply

Under the new TN RERA framework, every project must have three designated bank accounts, all opened:

1. In the same scheduled bank

2. In the same branch

3. Specifically linked to the individual project

Let us understand each account in detail.

1. Collection Account: Where All Homebuyer Money First Lands

Purpose of the Collection Account

The collection account is the first point of entry for all money paid by homebuyers.

Key Rules Governing the Collection Account

1. All payments from allottees must be credited only to this account

2. No cash diversion or alternate accounts allowed

3. No withdrawals permitted

4. No cheques, transfers, or manual debits allowed

Automatic Sweep Mechanism

Funds can leave the collection account only through an automated sweep process, ensuring:

1. No human discretion

2. No delay in regulatory tracking

3. No opportunity for misuse

This mechanism ensures that every rupee paid by a homebuyer enters the regulatory ecosystem immediately.

2. Separate RERA Account (70% Account): The Core Safeguard

Mandatory Same-Day Transfer of 70%

1. 70% of the amount collected

2. Must be transferred on the same day

3. Automatically swept into the separate RERA account

Permitted Uses of the RERA Account

Money in this account can be used only for:

1. Land cost

2. Construction cost

3. Development work

4. Refund of principal amounts to allottees (up to 70%)

Conditions for Withdrawal

Withdrawals are permitted only after submission of:

1. Architect’s certificate

2. Engineer’s certificate

3. Chartered Accountant’s certificate

This ensures withdrawals are linked to actual construction progress.

Important Restriction on Refunds

1. Refunds from this account are capped at 70%

2. Prevents misuse of construction funds for non-project liabilities

3. Transaction Account (30% Account): Controlled Operational Flexibility

Transfer of Remaining 30%

1. The remaining 30% of collections

2. Automatically transferred to the transaction account

Additional Credits Allowed

This account may also receive:

1. Promoter’s own funds

2. Project loans (secured or unsecured)

Permitted Uses of the Transaction Account

Funds can be used for:

1. Marketing and sales expenses

2. Administrative costs

3. Loan repayments and interest

4. Compensation to allottees

5. Penalties imposed by TN RERA

6. Refunds up to 30% of payable amount

This account provides necessary operational flexibility while remaining fully traceable.

Special Rules for Joint Development Projects (JDA)

Two Sets of Three Accounts Mandatory

For projects developed under joint development agreements:

1. Two complete sets of accounts must be opened:

   1. One for the landowner

   2. One for the promoter

2. This applies regardless of the number of landowners or promoters

Why This Is Important

Joint development projects often face disputes over:

1. Revenue sharing

2. Fund utilisation

3. Responsibility for delays

Separate account structures ensure:

1. Clear financial demarcation

2. Accountability of each stakeholder

3. Protection of homebuyer interests

Stricter Disclosure Norms for Project Loans

Mandatory Loan Disclosures

Promoters must now disclose complete loan details, including:

1. Name of lender

2. Sanctioned amount

3. Disbursed amount

4. Outstanding dues

5. Mortgage or charge details

Chartered Accountant Certification

A CA must certify that:

1. Loan funds are used exclusively for the project

2. No cross-project utilisation has occurred

Disclosure of Post-Registration Loans

1. Any loan taken after project registration

2. Must be disclosed immediately

3. All repayments must be routed only through the transaction account

This brings unprecedented transparency to project financing.

Fixed Deposits from the 70% RERA Account: Allowed With Safeguards

TN RERA has permitted promoters to park funds from the 70% account in fixed deposits, subject to strict conditions:

1. FD must be no-lien

2. Cannot be used to raise loans

3. Cannot create charges or encumbrances

4. Maturity proceeds must return only to the same RERA account

This balances financial prudence with homebuyer protection.

Change of Bank Accounts: No Longer at Promoter’s Discretion

Prior Written Approval Mandatory

Promoters must obtain prior written approval from TN RERA for:

• Any change in:

  1. Bank

  2. Branch

  3. Account details

Post-Completion Withdrawals

Remaining balances in all three accounts can be withdrawn only after:

1. Completion report is issued by TN RERA

2. Authority communicates approval to the concerned bank

This ensures funds remain protected until the very end of the project lifecycle.

How This Order Strengthens Homebuyer Protection

Key Benefits for Homebuyers

1. Eliminates fund diversion at the collection stage

2. Ensures project-specific fund usage

3. Improves chances of timely completion

4. Enhances refund security

5. Builds trust in regulated projects

For homebuyers, this order translates into real financial safety, not just legal promises.

Impact on Developers and Promoters

Increased Compliance, But Greater Credibility

While promoters face:

1. Higher compliance costs

2. Increased disclosures

3. Tighter controls

They also gain:

1. Improved credibility with buyers

2. Better access to institutional finance

3. Reduced litigation risk

4. Clear financial discipline

Serious and ethical developers stand to benefit the most.

Comparison with Other State RERA Authorities

While several states enforce the 70% rule, Tamil Nadu’s three-account system is among the most robust and structured in India.

It addresses not just usage, but also collection, movement, and final settlement of funds, making it a potential model for nationwide adoption.

Practical Takeaways for Homebuyers

Before booking a property in Tamil Nadu:

1. Check if the project is TN RERA registered

2. Verify compliance with the three-account framework

3. Ask for disclosures relating to:

   1. Project loans

   2. Completion timelines

4. Prefer projects registered after January 1, 2026

An informed buyer is a protected buyer.

Conclusion: A Game-Changer for Tamil Nadu’s Real Estate Sector

The TN RERA order mandating three separate bank accounts per project marks a decisive shift from reactive regulation to proactive financial governance.

By bringing every rupee of homebuyer money under regulatory oversight from the moment of collection, the Authority has significantly reduced the scope for misuse, delays, and project failures.

For homebuyers, this is a powerful safeguard.
For ethical developers, it is a credibility booster.
For the real estate sector, it is a step towards long-term trust and sustainability.

Tamil Nadu has set a new benchmark—one that prioritises transparency, accountability, and consumer confidence at the heart of real estate development.

Introduction: Why a Legal Checklist is Vital in Delhi NCR

Buying a property in Delhi NCR is one of the most significant investments for most people. Whether it’s a flat in Noida, a villa in Gurugram, or a plot in Ghaziabad, navigating the legal process can feel daunting.

A missed document, an unverified title, or an overlooked clause in an agreement can lead to financial loss, delays, or even litigation. Delhi NCR has seen a surge in property fraud cases in recent years, especially in under-construction projects and unauthorized colonies.

This comprehensive legal checklist is designed to help you avoid such risks and make a secure property purchase. From title verification to RERA compliance and mutation, every step is covered to safeguard your investment.

Why Legal Due Diligence Is Critical in 2025

Rise in Property Disputes in Delhi NCR

According to NCRB and RERA data, real estate disputes in Delhi NCR increased by nearly 20% between 2023–2024. Issues like unapproved layouts, builder defaults, and forged documents are common in the region.

Key Risks for Buyers Today

• Registry Fraud: The same property sold to multiple buyers.

• Power of Attorney (POA) Misuse: Fake POAs in NRI property sales.

• Builder Insolvency: Projects delayed despite RERA registration.

• Unapproved Colonies: Properties built on miszoned or illegal land.

A systematic legal checklist is your best defense.

Step-by-Step Legal Checklist for Buying Property in Delhi NCR

Step 1: Verify Ownership and Title Chain

1. Mother Deed Verification: Obtain the original title document and verify the ownership history for at least 30 years.

2. Cross-Check with Authorities: Use portals like DDA, GNIDA, DTCP, or MCG for land records.

3. Check for Heir NOCs: If the property is inherited, confirm legal heir consent.

4. GPA/POA Validity: Especially in NRI cases, ensure the Power of Attorney is notarized, apostilled, and registered.

Step 2: Obtain the Encumbrance Certificate (EC)

1. Shows any existing loans, mortgages, or legal disputes on the property.

2. Get EC from the local Sub-Registrar’s office for at least 30-40 years of history.

3. Required for both resale and builder-sold properties.

Step 3: Check RERA Registration

1. Verify the project’s RERA number at Delhi RERA or UP RERA portals.

2. Ensure approvals like:

   1. Saleable area

   2. Project timeline

   3. Builder disclosures

3. RERA protection: Enables compensation for delay and penalty enforcement.

Step 4: Validate Zoning and Land Use Permissions

1. Master Plan Delhi 2041: Check if land use matches your intended purpose.

2. For Noida/Ghaziabad, check with DTCP or GNIDA records.

3. Avoid properties in unauthorized colonies or agricultural zones.

Step 5: Confirm Building Plan Approvals and Occupancy

1. Verify:

   1. Building Plan Approval

   2. Intimation of Disapproval (IOD)

   3. Commencement Certificate (CC)

   4. Occupancy Certificate (OC)

2. Ensure actual construction matches approved plans.

Step 6: Check for Tax and Utility Dues

1. Obtain:

   1. Property tax receipts (past 3–5 years)

   2. Water/electricity bills

   3. NOCs from housing societies or authorities.

2. Verify no pending dues exist.

Step 7: Review the Agreement to Sell & Sale Deed

1. Critical Clauses to Check:

   1. Payment terms

   2. Delivery timelines

   3. Refund and penalty clauses

   4. Builder’s indemnity

2. Get the draft vetted by a property lawyer to avoid loopholes.

Step 8: Registration at Sub-Registrar Office

1. Delhi Stamp Duty Rates (2025):

   1. Men: 6%, Women: 4%, Joint ownership: 5%.

   2. Registration Fee: ~1% of property value.

2. Use online portals like DORIS (Delhi) or UP e-Registry Portal to book appointments.

3. Sign before two witnesses and collect the registered deed.

Legal Risks Unique to Delhi NCR Buyers

1. Registry Fraud

Fraudsters may sell the same property multiple times using fake documents.
Solution: Conduct a registry search, verify title, and match seller details with municipal records.

2. GPA Misuse in NRI Transactions

Fake or expired POAs are a common problem in NRI property sales.
Solution: Ensure POAs are properly notarized, apostilled, and registered.

3. Builder Defaults Despite RERA

Even RERA-registered projects face delays or abandonment.
Solution: File a complaint under RERA, approach consumer forums, or initiate NCLT proceedings.

4. Unapproved Colonies

Properties built in unauthorized colonies are at risk of demolition or denial of registration.
Solution: Check zoning compliance and land use approvals.

Special Checklist for NRI Buyers in Delhi NCR

1. Power of Attorney (POA): Notarized, apostilled, and registered in India.

2. FEMA Compliance: For fund transfers and RBI norms.

3. Repatriation and TDS: Ensure proper documentation for future resale.

4. Hire a lawyer specializing in NRI property transactions.

Resale vs. Under-Construction: Legal Differences

Role of a Property Lawyer in Delhi NCR

Conducting Due Diligence

A property lawyer verifies ownership, EC, zoning, and RERA compliance to uncover hidden issues.

Drafting and Reviewing Agreements

Ensures your Agreement to Sell and Sale Deed have protective clauses.

Managing Stamp Duty and Registration

Calculates charges and oversees registration without errors.

Assisting with Mutation

Helps update land records in municipal offices (DDA, GNIDA, DTCP).

Handling Disputes

Represents you in RERA, consumer forums, or courts in case of builder defaults or fraud.

Impact of Draft Registration Bill 2025

The new bill proposes:

1. Digital property registration across India.

2. Mandatory registration of agreements, GPA, mortgages.

3. Aadhaar/PAN-based e-verification.

This will improve transparency but also require stricter compliance from buyers.

Conclusion: Safeguard Your Investment

Buying property in Delhi NCR in 2025 can be a rewarding experience if done carefully. From verifying titles and tax dues to ensuring RERA compliance and proper registration, every step counts.

Engage a trusted property lawyer to guide you through the legal maze and secure your investment.

With urbanization on the rise and car ownership in India growing exponentially, parking has become a major point of concern in residential societies. The lack of adequate parking space, mismanagement, and unawareness of legal rights often lead to disputes between residents, builders, and Resident Welfare Associations (RWAs).

Legal Framework Governing Parking in Residential Societies

Real Estate (Regulation and Development) Act, 2016 (RERA)

RERA is a central legislation that regulates the real estate sector and mandates transparency in property dealings. According to Section 2(n) of RERA:

1. Open and stilt parking areas are considered "common areas".

2. Builders cannot sell these spaces independently.

3. Upon issuance of the Occupation Certificate (OC), ownership of such parking areas transfers to the society.

Implication: Builders selling open or stilt parking to individual owners are in violation of RERA provisions.

Model Building Bye-Laws (MBBL) by Ministry of Housing and Urban Affairs

The MBBL recommends:

1. 2 Equivalent Car Spaces (ECS) per 100 sq. metres of built-up area.

2. Minimum dimensions:

   • Cars: 2.5m x 5m

   • Two-wheelers: 1.2m x 2.5m

Although not enforceable, these are often used as guiding principles by state governments while drafting local rules.

State Apartment Ownership Acts

Each state has enacted its version of the Apartment Ownership Act, such as:

• Maharashtra Apartment Ownership Act, 1970

• Delhi Apartment Ownership Act, 1986

These empower societies to:

1. Frame internal bylaws.

2. Allocate parking.

3. Impose parking penalties.

Role of RWAs in Parking Management

Resident Welfare Associations (RWAs), once registered under the Societies Registration Act, 1860, play a vital role in parking governance:

• Allocation of Parking: Based on availability and fair rotation.

• Parking Stickers/Tags: For identification of authorized vehicles.

• Regulation Enforcement: Imposing fines and resolving disputes.

• Security Oversight: Ensuring lighting, CCTV coverage, and maintenance.

RERA also mandates that a housing society must form an RWA within 90 days of booking 51% of units.

Allocation and Types of Parking Spaces

Designated Parking Spots

These are fixed or rotating parking spots allotted to residents:

1. Allotment method: Fixed, lottery-based, or first-come-first-serve.

2. Mentioned in sale agreement or allotment letter.

3. Additional spots (if any) are allotted via bidding or rotation.

Visitor Parking

1. At least 5% of total parking must be reserved for visitors.

2. Guests must inform security of overnight stays.

Separate Zones for Vehicle Types

1. Four-wheelers and two-wheelers are often allotted separate areas.

2. Bicycle racks and EV charging spots are growing in popularity.

Common Parking Issues and Their Solutions

Safety and Speed Regulations

Safety measures within parking areas include:

• Speed Limit: Commonly set at 10 km/h.

• CCTV Surveillance: Essential for deterring crime.

• Proper Lighting: To avoid accidents and improve visibility.

• Maintenance: Repairing potholes, ramps, and drainage systems.

Parking Clauses in Sale and Lease Agreements

Key parking-related provisions in agreements:

1. Allotted space number and location

2. Usage terms (two-wheeler/four-wheeler only)

3. Maintenance and parking fees

4. Restriction on resale or leasing of the parking slot

Buyers and tenants must read these carefully before signing.

Penalties for Parking Violations

Societies often adopt structured fine policies, such as:

1. ₹500-₹1000 for blocking driveways

2. ₹500 for overstaying in visitor parking

3. ₹500 per day for unauthorized extra vehicles

Clear signage and advance intimation of rules are necessary to avoid conflicts.

Types of Parking Layouts in Residential Complexes

Perpendicular Parking

1. Most common

2. Efficient in large areas

3. Requires wider aisles

Angle Parking (45° or 60°)

1. Easier for entry and exit

2. Saves aisle space

3. Ideal for small to mid-size plots

Parallel Parking

1. Suitable for narrow lanes

2. Consumes more length, less width

3. Less efficient in tight residential blocks

Curved Parking

1. Rare but used for SUVs or sloped areas

2. Follows property curvature

Parking Rights for Tenants vs. Owners

Tenants often face resistance regarding parking. However:

1. If the owner has parking rights, tenant can use them.

2. The lease agreement should include the clause explicitly.

3. RWA cannot unilaterally deny access if rules are complied with.

Parking for Persons with Disabilities (PwDs)

1. Must have designated parking near building entry

2. Comply with Accessible India Campaign (Sugamya Bharat Abhiyan)

3. Wider slots with clear markings are a must

Impact of Electric Vehicles on Parking Norms

With EV adoption rising:

1. Charging stations must be integrated in parking layouts

2. Builders to provide EV-ready infrastructure as per MoHUA guidelines

3. RWAs must earmark EV charging zones with regulated usage

Judicial Precedents on Parking Rights

Some important legal precedents:

• Nahalchand Laloochand Pvt. Ltd. vs. Panchali Cooperative Housing Society (2010): Supreme Court ruled that open/stilt parking cannot be sold as separate units.

• DLF Ltd. vs. RWA (Garden Estate): Delhi High Court directed builder to hand over all common areas, including parking.

These cases underscore the need for transparent allocation.

Conclusion

Parking space management is a critical aspect of residential living in India. By understanding the governing laws like RERA, state-specific apartment acts, and building bye-laws, all stakeholders—residents, RWAs, and developers—can foster transparency and peaceful coexistence. Clear allocation, secure environments, fair usage, and legal awareness are the cornerstones of efficient parking governance.

As cities grow, embracing sustainable and technology-enabled solutions such as digital parking passes, smart sensors, and electric vehicle support will define the future of residential parking in India.