MahaRERA Mandates Separate Bank Accounts for Developers to Ensure Transparency and Accountability
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced new guidelines for developers to maintain separate bank accounts for project funds, ensuring transparency and accountability in financial operations.
MahareraReal Estate RegulationHome Buyers ProtectionTransparencyAccountabilityFinancial DisciplineReal Estate MaharashtraJun 27, 2024
The three accounts include the 'RERA Designated Collection Account' for 100% of revenue from flat buyers, the 'RERA Designated Separate Account' for 70% of funds allocated for project land and construction, and the 'RERA Designated Transaction Account' for the balance 30% of funds. This move aims to discontinue the practice of developers asking home buyers to deposit money in different bank accounts for various purposes.
MahaRERA Chairman, Ajoy Mehta, stated that the authority is committed to building trust among home buyers by legally empowering them to ensure their investments are secured and protected. The new guidelines will ensure financial discipline and transparency in project operations, enabling precise financial oversight in the real estate sector.
The directive is in accordance with Section 4(2)(i)(D) of the Real Estate (Regulation and Development) Act, 2016, which provides for dedicated bank accounts to ensure transparency, financial discipline, and better monitoring of transactions. The entire operating procedure has been defined for receipt, expenditure, and refund, ensuring that developers cannot excuse themselves from returning the booking amount to flat purchasers who intend to exit the project.
In case of cancellation of a flat's booking, the developer will be required to pay back 70% of the amount received, along with compensation for any losses, from the RERA Designated Separate Account. Interest on the amount will also be applicable.
The new guidelines will also restrict the misappropriation of funds, ensure transparency in fund utilization, and bring in financial discipline, ultimately helping in project timely completion. Additionally, developers will be required to declare loans availed from financial institutions against the mortgage of land or flats or the entire project, ensuring transparency and accountability in project finance.
Information
MahaRERA is a statutory body established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra.
MahaRERA is committed to protecting home buyers' interests and promoting transparency and accountability in the real estate sector.
Frequently Asked Questions
What is the purpose of MahaRERA's new guidelines for developers?
The purpose is to ensure transparency, financial discipline, and accountability in project operations, protecting home buyers' investments.
How many bank accounts will developers be required to open?
Developers will be required to open three designated bank accounts in a single bank.
What are the three designated bank accounts for?
The accounts are for 100% of revenue from flat buyers, 70% of funds allocated for project land and construction, and the balance 30% of funds.
What happens in case of cancellation of a flat's booking?
The developer will be required to pay back 70% of the amount received, along with compensation for any losses, from the RERA Designated Separate Account.
Will developers be allowed to alter the bank account without MahaRERA's approval?
No, developers cannot alter the bank account without MahaRERA's approval.
Tags:
Related News Articles
Revolutionizing Fractional Investment: Fracspace Unveils Mobile App for Realty Enthusiasts
Fracspace takes the real estate sector by storm with its innovative mobile app, enabling users to invest in properties and diversify their portfolios.
Taiwan's Real Estate Industry Shines with ESG Focus at 2024 FIABCI-Taiwan Excellence Awards
The 2024 FIABCI-Taiwan Real Estate Excellence Awards celebrate ESG initiatives, architectural aesthetics, and sustainable development in Taiwan's real estate industry.
Understanding Contempt of Court: Recent Developments and Implications
The concept of contempt of court has been in the spotlight recently, with several high-profile cases making headlines. But what exactly is contempt of court, and how does it impact individuals and organizations?
PNB Housing Finance Shares Soar 11% on the Back of Strong Q2 Results
PNB Housing Finance's shares have been on an upward trajectory, surging 22% in 2024 and a remarkable 169% over the past two years. The company's market capitalization currently stands at Rs 25,028 crore, reflecting strong investor confidence.
GIC Housing Finance's Net Profit Increases by 20.97% in Q2 FY25
GIC Housing Finance's net consolidated total income for Q2 FY25 was Rs 265.70 crore, a slight decrease of 1.66% from Rs 270.19 crore in the previous quarter. However, the company reported a significant rise in net profit, marking a 20.97% increase.
Signature Global Set to Exceed Rs 10,000 Crore Sales Target on Strong Housing Demand in Gurugram
Realty firm Signature Global Ltd is poised to surpass its sales bookings target of Rs 10,000 crore, driven by robust housing demand in Gurugram. The company's strategic projects and market presence are key factors contributing to this impressive performan