The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a new mandate requiring builders and developers to maintain three separate bank accounts for each project. Effective from July 1, these accounts are the Collection Account, the Separate Account, and the Transaction Account.
This decision follows a discussion paper on the maintenance and operation of bank accounts for registered projects, which sought suggestions and objections from stakeholders on 15 March 2024.
Three Bank Accounts for Every Project
Collection Account: Builders must maintain a Collection Account 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 payments from homebuyers, excluding taxes and pass-through charges, must be deposited into this account.
Separate Account: Builders must establish a Separate Account 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 into this account.
Transaction Account: Builders must establish a Transaction Account 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 into this account.
The introduction of the Collection Account, Separate Account, and Transaction Account is a strategic move to streamline financial operations for registered projects. The Collection Account serves as the primary repository for all payments from homebuyers, excluding taxes and pass-through charges. 70% of these funds are then directed into the Separate Account, dedicated to covering construction and land-related expenses. The remaining thirty percent is transferred into the Transaction Account, designated for operational expenses and other project-related costs.
Vakilsearch offers comprehensive solutions to assist builders and developers in complying with MahaRERA’s new mandate. Our services include MahaRERA registration. By partnering with Vakilsearch, builders can focus on their core activities, confident in the knowledge that their financial management practices meet MahaRERA’s standards for transparency and accountability. Our team provides ongoing support and guidance, helping you navigate the complexities of real estate financial regulations and achieve successful project outcomes.
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