MahaRERA Proposes Three-Account System for Real Estate Projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has put forward a groundbreaking proposal aimed at bolstering transparency and accountability in real estate projects. Under this proposal, every project is required to manage three distinct bank accounts within the same bank to streamline compliance and ensure the effective use of funds.

Breaking Down the Three-Account Strategy

The plan introduces a 'collection account' for gathering all payments from buyers, excluding taxes and statutory duties. From there, 70% of these funds will move to a 'separate account,' dedicated to covering key project costs like land acquisition, construction, loan interest, refunds, and up to 70% compensation to buyers if needed. The remaining funds will be allocated to a 'transaction account,' which will handle expenses outside of land and construction costs, including booking cancellations and penalties on the promoter.

Seeking Stakeholder Feedback

MahaRERA has opened the floor for feedback, inviting suggestions, views, and objections from stakeholders until April 15. This inclusive approach ensures that the final guidelines will reflect a broad spectrum of perspectives, prioritizing consumer protection and project integrity.

A Commitment to Sectoral Improvement

Ajoy Mehta, the chairman of MahaRERA, emphasized the initiative's goal to complete housing projects on time while enhancing sectoral transparency and accountability. He assured that the decision to implement these guidelines will be made after carefully considering all received feedback, with consumer interests being a primary focus.