MahaRera's New Mandate: 3 Bank Accounts Per Project for Developers
The Maharashtra Real Estate Regulatory Authority has made it mandatory for developers to open three separate bank accounts for each project, ensuring financial discipline and transparency in the real estate sector.
MahareraReal EstateRegulatory AuthorityBank AccountsTransparencyReal Estate MaharashtraJun 27, 2024
The decision is aimed at having precise financial oversight in the real estate sector, said Ajoy Mehta, MahaRera chairman. The Rera-designated collection and separate accounts are legally protected from getting attached by any government agencies, and funds can be withdrawn by the developer only on submission of certificates from the project's chartered accountants, engineers, and architects.
MahaRera decided to implement these measures after calling for suggestions and objections after floating a consultation paper in March. Until now, developers would force homebuyers to make payments in different accounts for different purposes, such as booking amount in one account and payments for amenities and infrastructure in another account.
The Real Estate (Regulation and Development) Act 2016, has a provision for dedicated bank accounts under Section 4(2)(i)(D). Funds in these accounts can't be withdrawn via cheque, online banking, credit or debit cards, or any other means. If there is more than one promoter, their responsibilities will be as per their mutual agreement. Promoters also need to declare the loans availed from any financial institution.
In case of cancellation of booking, homebuyers will not have to go through a lengthy process to get their money back. The funds will be available with the developer, who will have to refund 70% of the amount received and compensation for any losses from the designated separate account, as well as 30% of the original amount from the designated transaction account.
Information MahaRera is a regulatory authority established under the Real Estate (Regulation and Development) Act 2016 to regulate and promote the real estate sector in Maharashtra.
The Maharashtra Real Estate Regulatory Authority (MahaRera) is a regulatory body established to ensure transparency and accountability in the real estate sector in Maharashtra.
Frequently Asked Questions
What is the purpose of MahaRera's new mandate?
The purpose is to bring in financial discipline and transparency in the real estate sector.
How many bank accounts do developers need to open for each project?
Developers need to open three separate bank accounts for each project.
What are the three types of bank accounts required to be opened?
A Rera-designated collection account, a Rera-designated separate account, and a Rera-designated transaction account.
What is the purpose of the Rera-designated separate account?
The purpose is to keep 70% of funds allocated for the project's land and construction.
What happens in case of cancellation of booking?
Homebuyers will not have to go through a lengthy process to get their money back, and the developer will have to refund 70% of the amount received and compensation for any losses.
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