MahaRERA proposes opening of 3 types of bank accounts for realty projects

In order to maintain financial discipline and better oversight of the money received from homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has suggested opening three different types of bank accounts for real estate developments.

As per further information from MahaRERA’s circular,

Financial monitoring and discipline are core to any real estate project Section 4 (2) (l) (D) of the Real Estate (Regulation and Development) Act, 2016 therefore, mandates that seventy percent of the amount realized for the real estate project from the allottees, from time to time shall be deposited in a separate account to be maintained in a scheduled bank.

To safeguard homebuyers interest, ensure compliance, promote efficiency and transparency, accountability, and financial discipline as well as to have uniformity in the operation and maintenance of the bank account of real estate projects and to ensure proper and lawful utilization of the funds deposited in the designated bank account, MahaRERA has prepared a discussion paper on maintenance and operation of Bank Accounts of registered real estate projects.

MahaRERA’s circular further says that the promoter shall open following three bank accounts in a single scheduled bank before applying for the project:

A. Collection Account of the Project

B. Separate Account of the Project

C. Transaction Account of the Project

This direction shall be applicable on projects registered after Date- [To be announced soon]. The promoter is obligated to furnish the details of project bank accounts at the time of registration.

These accounts will be opened solely/jointly as mentioned in the registration form. In case of multiple promoters, necessary contractual or legal arrangements should be made by the principal promoter, who is registering the project, to ensure proper operations of RERA project accounts.

Considering that the above aspect may touch / impact and encompass, number of entities connected with real estate industry as well as homebuyers at large, MahaRERA invites suggestions / views / objections from all stakeholders to the proposal mentioned and elaborated in the discussion paper by 15th April 2024, at the specifically designated email id: [email protected].

Shreyas Vange