To bring transparency in the property sector, Associated Chambers of Commerce and Industry of India has suggested that it be made mandatory for real estate developers to open escrow accounts.

Escrow accounts offer a safe avenue to buyers of property since payments for purchase of an apartment or similar real estate are deposited in them and paid to the developer only after the project is complete and the possession handed over.

'It will ensure that loans granted to developers for development of real estate projects are utilised for the purpose for which they are granted,' said Assocham president Sajjan Jindal, commenting on the recommendations that have been handed over to the government.

Times of India