MahaRERA proposes each real estate project maintains 3 bank accounts
Real Estate Regulatory Authority (MahaRERA) has issued draft guidelines with a proposal that every real estate project needs to maintain three bank accounts in the same scheduled bank to ensure compliance, efficiency, transparency, accountability, and appropriate utilisation.
Of these accounts, Collection Account will maintain all revenue from the allottees and any other charges excluding all taxes and statutory duties.
The second account, Separate Account, will be where 70% of the revenue from the project will be transferred to from the Collection Account. This amount will be solely utilised to cover land and construction cost as stated in the laws, loan interest, refunds as well as compensation of up to 70% to the buyer.
The third account, Transaction Account, will have up to 30% of the revenue received in the Collection Account. This will be utilised to meet expenditures other than land and construction costs such as cancellation of any booking wherein the developer will be able to withdraw minimum 30% of the amount required to be paid to the allottees. Even the penalties on the promoter can be paid from this account.
The regulator floated a discussion paper on this and has invited suggestions, views, and objections from all the stakeholders until April 15.
«In the pursuit of timely housing project completion and bolstering transparency and accountability within the sector, MahaRERA's discussion paper on Collection, Separate, and Transaction accounts seeks to have a systematic policy framework on utilisation
