Starting from July 1st, developers will be required to open three different accounts in one bank. These accounts serve specific purposes in managing the finances of their projects. The first account is called the Rera-designated collection account, where developers will receive revenue from homebuyers. The second account is the Rera-designated separate account, which will hold 70% of the funds allocated for the project’s land and construction. Lastly, there is the Rera-designated transaction account, which will hold the remaining 30% of the funds.
Additionally, if a project has more than one promoter, they will need to open a Rera-designated master account to receive all collections from homebuyers. These measures have been put in place by the Maharashtra Real Estate Regulatory Authority (MahaRera) to ensure financial discipline and transparency in the real estate sector.
The Rera-designated collection and separate accounts are legally protected from being seized by government agencies. Developers can only withdraw funds from these accounts after submitting certificates from the project’s chartered accountants, engineers, and architects.
MahaRera made this decision after seeking suggestions and objections through a consultation paper earlier this year. Previously, developers would require homebuyers to make payments in different accounts for different purposes, such as booking amounts in one account and payments for amenities and infrastructure in another.
According to officials, Section 4(2)(i)(D) of the Real Estate (Regulation and Development) Act 2016 allows for dedicated bank accounts in these cases. The funds in these accounts cannot be withdrawn using cheques, online banking, credit or debit cards, or any other means. If there are multiple promoters involved, their responsibilities will be determined by their mutual agreement. Promoters are also required to declare any loans they have taken from financial institutions. In the event of a homebuyer canceling their booking, the developer will be able to refund 70% of the amount received and compensate for any losses from the designated separate account, as well as 30% of the original amount from the designated transaction account.
To prevent account closure, users of Paytm Payments Bank can make use of various features such as nomination facility, balance enquiries, net banking, and engaging in ATM transactions. These steps are crucial for maintaining active accounts.
Unfortunately, some city residents have faced frozen accounts due to unknowingly receiving fraudulent payments. Efforts are being made to resolve this issue with the authorities, but the struggle to unfreeze these accounts continues.