MahaRERA Mandates Builders To Maintain Three Separate Bank Accounts For Every Project From July 1

MahaRERA Mandates Builders To Maintain Three Separate Bank Accounts For Every Project From July 1

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a directive requiring builders/developers to establish three distinct bank accounts for every project: the Collection Account, the Separate Account, and the Transaction Account, effective from July 1st. This directive comes after the publication of a discussion paper concerning the management and utilization of bank accounts for registered projects, which solicited feedback from stakeholders on March 15, 2024.

Builders Have To Maintain Three Separate Bank Accounts For Every Project From July 1

Collection Account of Project

Builders must maintain a Collection Account for each registered project in a scheduled bank. The account should be named using the promoter's name and the project name (e.g., Promoter's Name + Collection Account for + Project Name). All payments from homebuyers, totaling 100% and excluding taxes and pass-through charges, must be deposited by the builder into this designated account.

Separate Account of the project

Builders must create a Separate Account for each registered project in a scheduled bank. The account should be named as follows: Promoter's Name (Account Holder) + Separate Account for + Project Name. Seventy percent (70%) of the collected funds must be automatically transferred into this account by the builder.

Transaction amount of the Project

Builders must set up a Transaction Account for each registered project in a scheduled bank. The account should be named as follows: Promoter's Name (Account Holder) + Transaction Account for + Project Name. Thirty percent (30%) of the collected funds must be automatically transferred into this account by the builder.