MahaRERA Proposes Three Bank Accounts For Mumbai Real Estate Projects
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is proposing a significant change for real estate developers in Mumbai. To ensure better oversight of project funds and protect buyer interests, MahaRERA has released a discussion paper outlining a new system involving three separate bank accounts for each project.
Three Accounts for Better Monitoring
Under the proposed guidelines, developers would be required to maintain three distinct accounts:
- Collection Account: This account would solely receive all payments from allottees, including those for parking, amenities, and other charges, excluding statutory taxes and duties.
- Separate Account: Seventy percent (70 per cent) of the funds collected from buyers would be transferred to this account. These funds can only be used for land acquisition, construction costs, loan interest, refunds to buyers, and compensation up to 70 per cent in case of disputes.
- Transaction Account: The remaining 30 per cent of the collected funds would be deposited in this account. This account would be used for project-related expenses beyond land and construction, such as handling booking cancellations (where the developer can withdraw a minimum 30 per cent of the required refund amount) and paying penalties imposed by MahaRERA.
Source: Times Property