According to the RERA Act, promoters must deposit 70% of customer advances or project funds in a dedicated project account so that these funds can be used for land acquisition and related project construction.
Withdrawals from the account must be verified by the Project Engineer, Architect, and Chartered Accountants and these accounts must be audited each financial year and a copy submitted to the Authority. This will ensure that customer progress is not diverted to other project development and that promoters do not delay the project due to lack of funding.
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