Keep 3 accounts in one bank for each project: MahaRERA

Nisha Nambiar / Jul 2, 2024, 05:43 IST

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Keep 3 accounts in one bank for each project: MahaRERA

Pune: Developers in the state will not be allowed to register new projects unless they open three specific bank accounts in a single bank, a senior MahaRERA official said on Monday.
This measure, effective from July 1, is aimed at ensuring transparency, financial discipline and protecting homebuyers’ investment, he added. The first bank account will be used for collecting money from homebuyers.

The second bank (escrow) account will have to be maintained for keeping aside 70% of the funds allocated for the project, and the third account for maintaining the balance 30% of funds received.

“MahaRERA is committed to building trust among home buyers by legally empowering them to ensure their investments are secure and protected. These measures are aimed at ensuring financial discipline and transparency in managing revenue as well as expenditures related to project’s development,” said Ajoy Mehta, MahaRERA chairman. Such a measure is expected to minimise potential delays in project completion, thereby benefiting homebuyers and enhancing the real estate sector’s credibility, he added.

Projects with more than one promoter will also have the flexibility of opening a ‘RERA designated master account’ to receive all collections from homebuyers, added officials. An official said so far developers have been telling homebuyers to make payments into various bank accounts for different purposes, which will change with this new order. Funds from these accounts can be withdrawn only on submission of certificates from chartered accountants, engineers and architects of the project. If there is more than one promoter, their responsibilities will be as per their mutual agreement. Officials said that this protocol has been made for the first time.

“Due to such provisions, there will be restrictions on misappropriation of money and transparency in fund’s utilisation, bringing in financial discipline,” he added.
On Monday, MahaRERA did not receive any application for new projects. Developers said they are reaching out to banks to start these accounts.

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