Mumbai: From July 1,
developers
will have to open three separate accounts in one bank — a Rera-designated collection account for
revenue
received from homebuyers, a Rera-designated separate account for 70% of funds allocated for the project’s land and construction, and a Rera-designated transaction account for the balance 30%. The Maharashtra Real Estate Regulatory Authority (
MahaRera
) has also made it mandatory for
projects
with more than one promoter to open a Rera-designated master account to receive all collections from homebuyers.
“The decision mandating 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, thereby enabling precise financial oversight in the real estate sector,” said Ajoy Mehta, MahaRera chairman.
The Rera-designated collection and separate accounts are legally protected from getting attached by any govt agencies and funds can be withdrawn by the developer only on submission of certificates from the project’s chartered accountants, engineers and architects.
MahaRera decided to implement these measures after calling for suggestions and objections after floating a consultation paper in March. Until now, developers would force homebuyers to make payments in different accounts for different purposes, such as booking amount in one account and payments for amenities and infrastructure such as gymnasium, swimming pool, and parking in another account.
Officials said Section 4(2)(i)(D) of the Real Estate (Regulation and Development) Act 2016, has a provision for dedicated bank accounts. Funds in these accounts can’t be withdrawn via cheque, online banking, credit or debit cards, or any other means. 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, they added. If a homebuyer cancels booking, he will not have to go through a lengthy process to get the money back as funds will be available with the developer, who 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.
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