Verified FactMarket Research
HARERA Escrow Guidelines & Developer Solvency in Gurugram: An Investor's Due Diligence Playbook
Author: Lead Administrator
•Reviewer: Senior Research Desk
•6 min read
•Published 2 October 2026
Introduction: The Shift to Forensic Due Diligence
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), homebuyer protection in Haryana reached a historic milestone with the operationalization of the Haryana RERA (Gurugram) authority.
However, having a RERA registration number alone does not guarantee timely project completion. Intelligent investors must know how to inspect the Statutory Quarterly Compliance Disclosures submitted by promoters.
1. The 70% Escrow Account Mandate
Under Section 4(2)(l)(D) of the Act:
70% of all amounts realized for the real estate project from allottees must be deposited in a dedicated, scheduled bank account.
Funds can only be withdrawn to cover the cost of land and construction.
Withdrawals must be certified by an architect, an engineer, and a practicing chartered accountant confirming that withdrawal is in proportion to the percentage of project completion.
2. Red Flags to Watch for in Quarterly Progress Reports
1Divergence Between CA Certification & Physical Progress: If financial withdrawals exceed 60% while superstructure completion remains below 35%, capital diversion risk is elevated.
2Pending Litigation or Injunctions: Check Section 4 filings for legal disputes regarding land parcel encumbrances or environmental clearance revocations.
3Frequent Extension of Completion Dates: Promoters filing repeated Form REP-V extensions signal operational liquidity constraints.
Conclusion
At AssetBulls, our research desk audits these statutory escrow statements quarterly for every project featured on our platform, ensuring buyers are never exposed to developer solvency surprises.