UP RERA Launches Digital Platform for Homebuyers to Report Developer Fund Diversions

The Uttar Pradesh Real Estate Regulatory Authority announced the introduction of a comprehensive digital reporting mechanism that allows property buyers to file complaints against developers who collect payments through unauthorized financial channels, according to official statements released on September 3, 2025, from Lucknow.

Enhanced Protection for Property Buyers

The new system requires all homebuyer payments to be channeled exclusively through officially designated collection accounts, which remain publicly accessible through the UP RERA portal for transparency.

Banking institutions must now transfer seventy percent of received funds daily into escrow accounts designated solely for construction activities, while the remaining thirty percent flows into transaction accounts as per the automated fund allocation system.

Streamlined Complaint Filing Process

Property buyers can now submit complaints directly through the RERA website when funds are routed incorrectly or bypass the designated collection mechanism. This development follows similar regulatory actions by MahaRERA to protect homebuyer interests.

Developers must disclose collection account details across all promotional materials and transaction documents to ensure complete transparency in financial dealings.

Regulatory Commitment to Transparency

UP RERA Chairman Sanjay R. Bhoosreddy emphasized the authority's dedication to maintaining transparency and enforcing legal action against any violations of the prescribed norms. The chairman stated that this initiative strengthens the existing framework for protecting homebuyer rights under RERA.

Key Takeaway

UP RERA's new portal-based reporting mechanism establishes stronger safeguards against fund misuse by developers, ensuring that buyer payments are transparently channeled toward project completion. This initiative aligns with broader efforts across India to strengthen real estate regulatory frameworks and protect homebuyer investments.