State RERA Directives, 2026: Escrow Accounts and the Four-Month Extension

Key points

  • UP-RERA revised its project account directions on 11 May 2026.
  • Several RERAs extended registration and completion timelines by four months in July and August 2026.
  • Buyers should check how an extension applies to their project before relying on delay interest.

Three developments matter to Delhi NCR homebuyers and promoters: project accounts, a four-month extension, and Supreme Court directions. Details below are as reported, as at 20 September 2026. Check each original notice before you rely on it.

1. UP-RERA: revised project account directions

UP-RERA lists a “3rd Revision of Project Account Directions” dated 11 May 2026. A law-firm summary reports these features:

  • A collection account receives all money from allottees, including GST and loan disbursements.
  • 70 per cent moves to a separate account, which is meant for land and construction.
  • Up to 30 per cent moves to a transaction account.
  • Withdrawals from the separate account need certificates from an architect, an engineer and a chartered accountant, in proportion to work done.

The 70 per cent rule itself comes from section 4(2)(l)(D) of the RERA Act, 2016.

2. The four-month extension

  • Central advisory: on 31 July 2026 the Ministry of Housing and Urban Affairs advised RERAs to extend the timelines of eligible projects by four months. The reported reason is force majeure linked to the West Asia conflict.
  • UP-RERA: a notice of 31 July 2026 deals with extension of registration and completion timelines. Reports say it is not automatic and depends on conditions such as pending progress reports being filed.
  • Haryana RERA, Gurugram: an order dated 11 August 2026 extends timelines, reportedly without an application. Reports say developers cannot use it to raise prices on units already sold.
  • Delhi RERA: we found no corresponding order.

3. Supreme Court directions of September 2025

In Mansi Brar Fernandes v. Shubha Sharma, decided on 12 September 2025, the Court gave directions to protect homebuyers. Reports say they include:

  • Each RERA to frame a standard procedure for escrow of buyers’ money in early-stage projects.
  • At least one RERA member with a real estate legal or consumer background.
  • Steps towards more uniform state rules.

We have not confirmed whether each state has issued its procedure.

What it means for you

  • Buyers: it is not settled how far an extension affects a claim for delay interest under section 18. Read the order that covers your project, and take advice on your facts.
  • Promoters: keep quarterly progress reports and audits filed, since extensions may depend on them. Follow the account directions for every withdrawal.

Key takeaway

Check your project’s page on the state RERA website for orders and notices. Save dated copies with your agreement.

Regulatory reference
UP-RERA Project Account Directions (3rd Revision), 11 May 2026; MoHUA advisory and UP-RERA notice, 31 July 2026; HRERA order, 11 August 2026

Law stated as at 20 September 2026

Related practice areas

This article is general information. It is not legal advice and does not create an advocate-client relationship.

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