Starting January 1, 2026, a major regulatory update will take effect in Tamil Nadu under the Tamil Nadu Real Estate Regulatory Authority, mandating a three-bank-account structure for all real estate projects. This reform is designed to strengthen transparency and ensure that funds collected from homebuyers are used strictly for the specific project, preventing diversion to unrelated developments. Under this framework, promoters are required to open three separate bank accounts within the same scheduled bank and branch. All payments from homebuyers must first be deposited into the “RERA Designated Collection Account (100%),” ensuring complete traceability of funds. From this account, 70% of the funds are automatically transferred to the “RERA Designated Separate Account,” which is reserved exclusively for land and construction costs, while the remaining 30% is transferred to a “Transaction Account” for other permissible project-related expenses. Access to the 70% separate account is tightly regulated, and promoters can withdraw funds only after submitting certified documents, including the Architect Certificate (Form 1), Engineer Certificate (Form 2), and Chartered Accountant Certificate (Form 3), in line with prescribed regulations, with mandatory uploading of these documents on the TNRERA portal. This requirement is in accordance with Section 4(2)(l)(D) of the Real Estate (Regulation and Development) Act, 2016, which mandates maintaining a dedicated account for construction and land costs. Additionally, all customer payment channels must be aligned to ensure that funds flow only through the designated collection account, failing which such receipts will be treated as non-compliant. Any changes to these bank accounts after project registration are permitted only for valid reasons and require prior written approval from TNRERA, along with submission of prescribed forms and declarations. Overall, this three-account regime introduces greater financial discipline, accountability, and protection for homebuyers, significantly enhancing trust and regulatory oversight in the real estate sector.