A developer is required to open an escrow account with a government-approved bank. An escrow account is a bank account into which an account holder deposits funds on a regular basis and authorizes the bank to withdraw funds to pay for certain fixed obligations. According to Section 4(2)(l)(D)of RERA Act, seventy percent of the amount realized by a promoter from buyers shall be deposited in a ‘separate account’ to be maintained in a scheduled bank to cover the cost of construction and the cost of land, and shall be used only for that purpose.