Q. With reference to Real Estate Regulation and Development Act, 2016, consider the following statements:
1. The Act defines Carpet Area as net usable floor area of flat. Buyers will be charged for the carpet area and not the super built-up area.
2. The developer has to deposit 100% of the funds collected from buyers in a separate escrow bank account for any purpose.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Statement 1 is correct. 

Statement 2 is incorrect: The developer has to deposit 70% of the funds collected from buyers in a separate escrow bank account for construction of that project only.  

Source: Indian Express