The Maharashtra Real Estate Regulatory Authority (MahaRera) has announced new Bank Account Regulations for developers, effective from July 1, 2023. The authority has made it mandatory for developers to open three separate accounts in one bank for each project. This move aims to bring financial discipline and transparency in managing revenue as well as expenditures related to the project.
Three Mandatory Bank Accounts:
- Rera-designated Collection Account: This account will be used to collect revenue received from homebuyers. The funds in this account are legally protected from being attacked by any government agencies.
- Rera-designated Separate Account: This account will hold 70% of the funds allocated for the project’s land and construction. The developer can only withdraw funds from this account upon submission of certificates from the project’s chartered accountants, engineers, and architects.
- Rera-designated Transaction Account: This account will hold 30% of the funds. This account will be used for transactions related to the project.
MahaRera’s Ajoy Mehta stated that the decision to mandate the opening of three bank accounts in a single bank for each project is aimed at having financial discipline and transparency in managing revenue as well as expenditure related to the project.
Protection of Homebuyers’ Interests:
The new regulations also aim to protect the interests of homebuyers. Until now, developers would force homebuyers to make payments in different accounts for different purposes. However, with the new regulations, all collections from homebuyers will be received in a single Rera-designated master account if the project has more than one promoter.
Moreover, if a homebuyer cancels their booking, they will not have to go through a lengthy process to get their money back. The developer 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.
Promoters’ Responsibilities:
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.
Conclusion:
The Bank Account Regulations introduced by MahaRera are a significant step towards bringing transparency and financial discipline in the real estate sector. The move will not only protect the interests of homebuyers but also ensure that developers follow a systematic approach to managing funds related to the project.
