India, April 5 -- LUCKNOW To check misappropriation of funds and enhance transparency in execution of projects, the UP Real Estate Regulatory Authority (RERA) has made disclosure of funds collected from homebuyers mandatory for promoters. The decision came on Friday, in wake of the authority getting complaints that promoters were not depositing funds received from allottees into designated 'collection' account.

After complaints of misappropriation of funds by promoters, the UP RERA has warned of stern action against violators.

According to the Real Estate (Regulation and Development) Act, 2016, promoters are mandated to keep 70% of the funds received for project development in the projects' 'separate account' and use them exclusively fo...