MahaRERA Mandates Builders To Maintain Three Separate Bank Accounts For Every Project From July 1
Aryan Raj
4 July 2024 12:15 PM GMT
Maharashtra Real Estate Regulatory Authority (MahaRERA) has mandated builders/developers to maintain three separate bank accounts for each project: the Collection Account, the Separate Account, and the Transaction Account, starting from July 1.
This decision follows the release of a discussion paper on the maintenance and operation of bank accounts for registered projects, which invited suggestions and objections from stakeholders on March 15, 2024.
Three Bank Accounts for Every Project
- Collection Account of Project
Builders are required to maintain a Collection Account of the Project in a scheduled bank for each registered project. The account name should include the promoter's name and the project name (e.g., Name of Promoter + Collection Account for + Project Name). All 100% of payments from homebuyers, excluding taxes and pass-through charges, should be deposited by the builder into this account.
- Separate Account of the project
Builders are required to establish a Separate Account of the Project in a scheduled bank for each registered project. The account should be named in the format Name of Promoter (Account holder) + Separate Account for + Project Name. Seventy percent (70%) of the collected amount should be automatically transferred by the builder into this account.
- Transaction amount of the Project
Builders are required to establish a Transaction Account of the Project in a scheduled bank for each registered project. The account should be named in the format Name of Promoter (Account holder) + Transaction Account for + Project Name. Thirty percent (30%) of the collected amount should be automatically transferred by the builder into this account.
