Builder Asks You to Pay Into a New Account? TG RERA's Prior-Approval Rule for Hyderabad Buyers
A TG RERA circular dated 09.07.2025 says a promoter can change a registered project's separate bank account only with the Authority's prior approval, must tell allottees within seven days of the order, and gets one change per project. Here is how a Hyderabad buyer should verify a new account before paying.
The message usually arrives as a WhatsApp forward or a line in a demand letter: please make your next instalment to our new account. For a Hyderabad buyer midway through an under-construction purchase, that one sentence can decide whether the money lands in the ring-fenced project account the law requires, or somewhere it should not. Telangana's real estate regulator has a written procedure for exactly this situation, and very few buyers know it exists.
TG RERA Circular No.4009/TG RERA/2024, dated 09.07.2025, deals with a promoter changing or transferring the separate bank account of a registered project from one scheduled bank or branch to another. It is still listed on the Authority's circulars page. Here is what it says, and how to use it before you transfer a rupee.
The short answer. Under the TG RERA circular dated 09.07.2025, a promoter may change or transfer a registered project's separate bank account only with prior approval of the Authority, after filing up to eighteen sets of documents in the online correction module. The promoter must undertake to inform all allottees in writing within seven days of the Authority's order, and to move the closing balance to the new accounts within 15 days of approval. Such a change is granted once through the validity of the project, except in special and emergent circumstances. The trade-off for buyers: this protects you only if you verify the change with TG RERA before paying, because a written notice from the builder alone is not the approval.
Why does the project bank account matter so much?
Because the law ties your money to the project. The circular restates that Section 4(2)(l)(D) of the Real Estate (Regulation and Development) Act, 2016 requires every promoter to maintain 70 percent of the amounts realised for the project in a separate account in a scheduled bank, to be used only for construction and land costs. The TG RERA circular on change of the separate bank account says that requirement applies to every real estate project registered with the Authority.
In Telangana, the declaration format attached to the circular names three accounts for each project: a TG RERA Collection Bank Account, a TG RERA Separate Bank Account and a TG RERA Transaction Bank Account. In that format, the promoter confirms standing instructions to the bank for an auto-sweep of not less than 70 percent of the amount collected from allottees from the collection account to the separate account, and not more than 30 percent to the transaction account.
In rupees: on an illustrative Rs 10 lakh instalment paid into the collection account, at least Rs 7 lakh should sweep into the separate account and no more than Rs 3 lakh into the transaction account. We explained the withdrawal side of this, and the chartered accountant's certificate that controls it, in our earlier guide to TG RERA Form 3 and the three project accounts.
What did TG RERA find, and what did it direct?
The circular records that there were instances where promoters changed or transferred the separate bank account from one scheduled bank or branch to another after registration, without notifying the Authority, where the separate account was already notified. In response, the Authority directed that any change or transfer of the separate bank account after project registration with TG RERA shall only be permitted with prior approval of the Authority.
The circular says it came into force from the date of the order, and that it was issued by order of the Authority dated 09.07.2025. The documents a promoter submits are to be scrutinised and placed for the Authority's approval.
What must a promoter file to change the account?
The list is long by design. The circular requires the promoter to upload documents in the correction module on its login. The table below picks five items that matter most to a buyer, with the circular's requirement and the question you can reasonably put to the builder.
| Filing item | What the circular requires | Why it matters to a buyer | What you can ask for | Where to cross-check |
|---|---|---|---|---|
| Self-declaration | Signed reasons and justification, plus a list of all the promoter's TG RERA projects | Explains why the account is moving | A copy of the stated reason | Builder's written reply |
| Complaints statement | All complaints before TG RERA for each project, with orders and execution status | Shows whether buyers elsewhere are chasing refunds | Count of open complaints | TG RERA orders pages |
| Allottee notice undertaking | Inform all allottees in writing within seven days of the Authority's order | Your written notice should follow an order, not precede it | The date of the Authority's order | Builder's written notice |
| Borrowings undertaking | Deposit the entire amount borrowed or to be borrowed for the project into the RERA-designated account | Keeps loan money inside the ring fence | Format-B finance disclosure | Builder's written reply |
| IBC and recovery disclosure | Disclose any proceedings under the Insolvency and Bankruptcy Code, 2016 or other recovery action | Flags financial stress early | A written yes or no | Builder's written reply |
The circular also lists sales details flat by flat or plot by plot, bank statements of the separate accounts, the latest Form 1, Form 2 and Form 3 certificates, an independent chartered accountant's assessment of quarterly reports and Form 7 submissions, and any other documents the Authority may seek.
How often can a builder switch the account?
Rarely, on paper. Item XVII of the circular says the application for change or transfer of the separate designated bank account will be granted once through the validity of the project, except on reasonable special and emergent circumstances as considered by the Authority based on the facts of each case.
So if you are told about a second or third change during the life of the same project, that is a reason to ask what special circumstances the Authority accepted, and to see the order.
What does the builder promise about the new account?
The notarised Declaration-cum-Undertaking annexed to the circular contains three promises that are directly useful to buyers. First, the promoter undertakes to transfer the closing balance in the old accounts to the new accounts within 15 days after the Authority approves the change. Second, the promoter declares that the new separate bank account is a no-lien account and that no charge or encumbrance has been or will be created against amounts deposited in it. Third, the promoter declares that no court, NCLT, forum, tribunal, banking institution or competent authority has passed a charge or prohibitory order regarding the change or the funds in the previous account.
Format A, also annexed, adds that the TG RERA Separate Bank Account is not an escrow account and is free from lien, loans and third-party control, and that the accounts are to be audited within six months after the end of every financial year, with certified statements uploaded on the TG RERA promoter web page. If you want to read the separate deadline for this year's audit filing, the Authority's Special Circular-III dated 30.09.2026 gives a revised due date of 21.12.2026 for the Form 7 report for 2025-26.
What should you do when a new account number arrives?
Treat it as a verification task, not a payment task. The circular's own premise is that some promoters have switched accounts without telling the regulator. A short pause costs you nothing. Paying into an account that is not the notified project account can leave you arguing later about where your money went.
- Do not pay the next instalment until you have the new account details in writing on the promoter's letterhead, quoting the project's TG RERA registration number.
- Ask for the date and reference of the TG RERA order approving the change, since the circular permits a change only with prior approval.
- Look up the project on the TG RERA portal, and if the builder cannot show the approval order, write to the Authority to confirm the change before you transfer funds.
- Confirm the account holder name matches the promoter and the account is described as a TG RERA collection account for that project.
- If you have a home loan, tell your lender in writing so disbursements go to the approved account and not the old one.
- Keep the old and new account details, the builder's notice and your payment receipts together in one file.
- If the builder cannot produce an approval, or the account changes again, consider writing to TG RERA and using the complaint route under the Act.
Buyers comparing Hyderabad projects can see how we profile a registered project in our page on Casagrand Mandarin in Ameenpur. Whatever project you choose, match the bank details in your agreement for sale against the registration record.
Frequently asked questions
Can a Telangana builder change the project bank account after RERA registration?
Yes, but TG RERA Circular No.4009/TG RERA/2024 dated 09.07.2025 says any change or transfer of the separate bank account after registration shall only be permitted with prior approval of the Authority. The promoter must file a set of declarations, statements and certificates in the correction module, which are scrutinised and placed for approval.
How will I be told if my project's account changes?
The circular requires the promoter to undertake that, within seven days from the date of the Authority's order, all allottees of the project shall be informed in writing of the change or transfer. Ask for that order's date and reference, and check the project's TG RERA page before paying into the new account.
How many times can a promoter change the account?
Item XVII of the circular says an application to change or transfer the separate designated bank account will be granted once through the validity of the project, except on reasonable special and emergent circumstances as considered by the Authority on the facts of each case. A repeated change should prompt questions.
What happens to money already in the old account?
Under the notarised Declaration-cum-Undertaking annexed to the circular, the promoter undertakes to transfer the closing balance in the old accounts to the new accounts within 15 days after the Authority approves the change, and declares that the new separate account is a no-lien account with no charge created against deposits.
For the Authority's broader rules on late-payment interest and handover to an association, see our guide to the TG RERA FAQ.
Last updated 2026-11-14. PropNewz Team.
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