Ask for the project-specific account and certification evidence before accepting the transfer or accusing anyone of diversion. Section 4(2)(l)(D) requires seventy per cent of amounts realised from allottees for the project to be kept in a separate scheduled-bank account for construction and land cost. A group-company label does not by itself establish that a withdrawal serves that permitted purpose.
Can money ever be paid to a related company?
The recipient's relationship is relevant, but the payment's actual purpose and compliance matter. A genuine project land or construction cost and a loan to finance an unrelated development are different transactions. Ask what was supplied, which project incurred the cost and what documents support it.
Do not state that every related-party payment is prohibited solely because the companies share directors. Equally, do not accept group treasury practice as an explanation for ignoring the project's statutory restrictions. Follow the money to the underlying obligation.
What certification is required for withdrawal?
The provision ties withdrawal to the percentage of project completion and requires certification by an engineer, architect and chartered accountant in practice. Ask for the relevant certificates and the period and withdrawal to which they relate.
A progress photograph is not a substitute for the required professional certification. Nor does the existence of a certificate prove every underlying statement true. If your concern is a mismatch between certified completion and the site, preserve dated records and identify the specific discrepancy for examination.
What does the annual audit check?
The promoter must have the accounts audited by a practising chartered accountant within six months after the financial year's end. The statutory verification covers whether amounts collected for the particular project were used for it and withdrawals complied with the proportionate-completion requirement.
Ask for the relevant project's audit material or seek its production through the appropriate regulatory process. Do not demand unrelated purchasers' private bank information where a project statement would address the issue. Identify the year and transaction instead of requesting every company account since incorporation.
Can buyers ask RERA to investigate?
Section 35 empowers the Authority to call for information and conduct an inquiry within its scope, including through a person it appoints. A complaint under section 31 should set out the suspected contravention and supporting facts. Request examination of the specified account entries and certificates.
A useful schedule has four columns: money collected, proposed or completed transfer, claimed project purpose, and missing supporting document. Explain why the gap matters. The Authority decides what information or inquiry is appropriate, so do not promise that filing a complaint automatically produces a forensic audit or account freeze.
What evidence should we preserve?
Keep demand letters, payment receipts, the written transfer explanation, project progress disclosures and any lawfully obtained account or audit material. Record which statements came directly from the promoter and which are unverified discussion in a buyers' group.
If a screenshot is circulating without its source, seek the original before accusing named individuals of taking funds. A credible complaint distinguishes an identified inconsistency from speculation. Buyers can coordinate a common documentary request while protecting personal account information.
Should we stop paying instalments?
Do not assume a suspected account breach automatically suspends your agreement or loan obligations. Obtain advice on the evidence, payment terms and any protective relief needed. A payment default may create a separate dispute without resolving the suspected diversion.
Your immediate request should be concrete: identify the transfer, explain its project purpose, provide the corresponding withdrawal certification and identify the annual audit verification. If the response does not address those points, the unresolved documents give the adviser a focused basis for regulatory action.
This article is for general informational purposes only and does not constitute legal advice. Consult a qualified advocate for advice on your specific situation.