Section 12. Promoter to maintain separate account of sums taken as advance or deposit and to be trustee therefor and disburse them for purposes for which given.

The promoter shall maintain building-wise separate account in any bank of sums taken, by him, from persons intending to take or who have taken flats, deposits including any sums so taken towards the share capital for the formation of co-operative society or a company or towards the outgoings, including ground rent, if any, municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any; and he shall hold the said moneys for the purposes for which they were given and shall disburse the moneys for those purposes and shall, on demand in writing by an officer appointed, by general or special order, by the State Government for the purpose, make full and true disclosure of all transactions in respect of that account. The promoter shall also follow the instructions specified in Schedule II. The promoter shall get the accounts maintained for heads mentioned in Schedule II, as provided under this section, audited from a Chartered Accountant registered with the Institute of Chartered Accountants of India.