Maharashtra's Real Estate Sector to Benefit from MahaRERA's New Bank Account Regulations
Discover how Maharashtra's real estate sector is set to benefit from increased buyer protection and transparency with MahaRERA's new regulations.
MaharashtraReal EstateMahareraReraBank AccountsReal Estate MaharashtraJun 30, 2024
The three accounts are RERA Designated Collection Account, RERA Designated Separate Account, and RERA Designated Transaction Account. The Collection Account will receive 100% of buyer funds, excluding government taxes. A minimum of 70% of these funds will be transferred to the Separate Account, earmarked for land acquisition and construction expenses. The remaining 30% will be allocated to the Transaction Account, allowing developers flexibility for project-related expenses.
These measures are designed to safeguard buyer interests by ensuring funds are utilized efficiently towards project completion. Homebuyers will benefit from increased transparency, with 70% of their money clearly allocated for construction. Faster refunds are also possible, and project completion will stop all transactions in these accounts, ensuring funds are used for their intended purpose. Banks will be required to prevent unauthorized access to the designated accounts, offering an extra layer of security for buyer funds. Developers will also need to disclose details of any loans taken for the project, promoting financial transparency.
MahaRERA Chairman Shri Ajoy Mehta believes these measures will build trust between homebuyers and developers, minimizing potential delays in project completion and enhancing the real estate sector's credibility. With more transparency and protection, homebuyers in Maharashtra can have greater confidence in their real estate investments.
Frequently Asked Questions
What is the main objective of MahaRERA's new regulations?
The main objective is to enhance transparency and buyer protection in the real estate sector by introducing specific bank accounts for project funds.
How many distinct accounts will developers need to establish under the new regulations?
Developers will need to establish three distinct accounts within a single bank.
What percentage of buyer funds will be allocated to the RERA Designated Separate Account?
A minimum of 70% of buyer funds will be allocated to the RERA Designated Separate Account.
What is the benefit of the RERA Designated Transaction Account?
The Transaction Account allows developers flexibility for project-related expenses other than land acquisition and construction.
When do the new regulations come into effect?
The new regulations come into effect on July 1st, 2024.
Related News Articles
Godrej Properties Acquires 53-Acre Land in Kolkata for ₹500 Crore Revenue Potential
Godrej Properties Ltd., a leading real estate developer based in Mumbai, has announced the acquisition of a 53-acre land parcel in Joka, Kolkata. This strategic move is expected to generate a revenue potential of ₹500 crore for the company.
Pune's Health Crisis: Understanding the Spread of Guillain-Barré Syndrome
Pune is currently facing a rising health concern with the increasing cases of Guillain-Barré Syndrome (GBS). This rare and severe nerve disorder is causing alarm among health officials and the public. What is GBS, and why is it spreading in Pune?
Highrise Hope: Realty Sector Struggles with Fewer Launches and Sluggish Sales
For the second consecutive quarter in 2024-25 (FY25), the real estate residential sector has seen a decline in new launches and inventory sales. This slowdown has led to underperformance in the BSE Realty index compared to the S&P BSE Sensex, but brokerag
Vijay Kedia's Melodic Plea: Ease the Dividend Tax Burden on Indian Investors
Market expert Vijay Kedia's unique appeal to FM Nirmala Sitharaman to reconsider dividend tax burden on investors
Mumbai Police Takes Proactive Steps to Enhance Security Amid Potential Threats
In a bid to prevent any terrorist or anti-social activities, the Mumbai Police have issued a preventive order, directing landlords, property owners, and real estate dealers to furnish critical information.
NEET UG 2024: Counseling Set to Begin After Supreme Court Verdict
NEET UG 2024 counseling to commence after Supreme Court ruling, MCC and AACCC to announce schedules