Industry · real estate
Large payments, years apart, each tied to a stage
A home under construction is paid for in stages, often by the buyer and their lender together, and in India most of each payment is ring-fenced for the project by law. Collections are only half the job; showing where every rupee went is the other half.
- Which unit is this payment for?
- Which demand does it settle?
- How much goes to the project account?
- Booking · 10%On allotment · ₹5,60,000 to the separate project account₹8,00,000
- Foundation · 20%On completion of foundation · ₹11,20,000 to the separate project account₹16,00,000
- Structure · 30%On completion of slabs · ₹16,80,000 to the separate project account₹24,00,000
- Finishing · 25%On internal finishing · ₹14,00,000 to the separate project account₹20,00,000
- Possession · 15%On offer of possession · ₹8,40,000 to the separate project account₹12,00,000
Money in a real estate business
| Flow | From | Watch for |
|---|---|---|
| Booking amount | Buyer | Matching to the unit before allotment is final |
| Construction-linked instalments | Buyer and their home-loan lender | Which demand each payment settles |
| Tax deducted by the buyer | Paid by the buyer to the tax department | Receipts that show the full demand settled |
| Rent and deposits | Tenants | Monthly collection and deposit refunds |
| Maintenance charges | Residents | Many small payments, often late |
| Brokerage | Paid to or by brokers | Agreements and invoices |
The separate project account under RERA
Section 4(2)(l)(D) of the Real Estate (Regulation and Development) Act, 2016 requires a promoter to deposit seventy per cent of the amounts realised for a project from allottees, from time to time, in a separate account maintained in a scheduled bank. The money covers the cost of construction and the land cost, and is used only for that purpose.
Withdrawals from it are in proportion to the percentage of completion, after certification by an engineer, an architect and a chartered accountant in practice, and the accounts are audited each year. For the payment side, that means every collection has to be traceable to a project and split correctly, from day one.
Collect by project
So every receipt is attributable to one project.
Deposit the 70% promptly
Into that project's separate account.
Withdraw against certificates
In proportion to completion, as certified.
Keep the audit trail
Receipts, deposits and withdrawals, reconciled.
State RERA authorities issue their own directions on these accounts. This is a summary of the Act's provision, not legal advice.
Matching payments to units and demands
A buyer's instalment might arrive as their own transfer, a cheque, and a disbursal from their lender, all against one demand letter. If the payments don't say which unit and which demand they're for, someone has to work it out from names and amounts.
A unique account number per unit (a virtual account) solves most of this: every transfer to it belongs to that unit, whoever sends it. Payment links on demand letters cover buyers who prefer UPI or cards for smaller amounts.
Virtual account per unit
For buyer transfers and lender disbursals alike.
Demand number on every receipt
So the ledger shows which stage is settled.
Tax deducted recorded
So a demand isn't shown short when the buyer deducted tax.
Cancellations and refunds
When a booking is cancelled, the amount refunded follows the agreement for sale and the rules that apply to it. The payment side has its own traps: part of the money may have come from the buyer's lender, part may already sit in the project account, and the buyer's bank details may have changed. Verify the account before refunding, deal with the lender's interest first where there is one, and keep the refund tied to the unit's receipts.
After handover: rent and maintenance
Completed buildings bring a different pattern: many small, regular payments. Rent from tenants, maintenance from residents, deposits held and returned. Mandates remove most of the monthly chasing; payment links with the flat number and month handle the rest.
Mandates for regular charges. Rent and maintenance debited on schedule.
Reference by flat and month. So partial and late payments are clear.
Deposits tracked separately. Until they're returned.
Reminders before penalties. Most late payments are forgotten, not refused.
Where Peneu fits
This page doesn't name any developer, broker or property manager using Peneu, and doesn't describe a product that operates RERA accounts. Whether Peneu can help with collections, unit-wise matching or reconciliation is confirmed during onboarding.
Real estate payment questions
What is the RERA 70% account?
Section 4(2)(l)(D) of the Real Estate (Regulation and Development) Act, 2016 requires seventy per cent of the amounts realised for a project from allottees to be deposited in a separate account in a scheduled bank, to cover the cost of construction and land, and used only for that purpose. Withdrawals are in proportion to the project's completion, certified by an engineer, an architect and a chartered accountant.
Does each project need its own account?
The separate account is for the real estate project, so developers with several projects keep them apart. State RERA authorities have issued their own directions on how these accounts are operated; check the ones for your state.
How do home-loan disbursals fit in?
Many buyers fund later instalments with a home loan, and the lender often disburses stage by stage against your demand letters. Those payments need matching to the unit and the demand just like the buyer's own payments.
Do buyers have to deduct tax when paying?
In some cases buyers must deduct tax at source on property payments and deposit it with the tax department, so the amount you receive is less than the demand. Whether and how much is a tax question; make sure your receipts and ledgers account for it.
How should cancellation refunds be handled?
As the agreement for sale and applicable RERA rules set out, paid back to the buyer's verified account, with any home-loan lender's interest taken into account. Record every refund against the unit and the original receipts.
Does Peneu work with developers?
This page doesn't name any developer or broker using Peneu, or describe a product built for RERA accounts. Whether Peneu can help with collections or reconciliation is confirmed during onboarding.
Official sources
- Haryana Real Estate Regulatory Authority — Directions regarding compliance of section 4(2)(l)(D)Restates the Act's requirement: 70% of amounts realised from allottees in a separate scheduled-bank account, withdrawals in proportion to completion with certification, annual audit.
Last reviewed . Examples, amounts and screens marked illustrative are not Peneu figures.