Maharashtra RERA proposes obligatory separate financial institution accounts for actual property builders

The Maharashtra Actual Property Regulatory Authority has floated a dialogue paper that mooted that actual property builders ought to open three financial institution accounts in a single financial institution earlier than they will apply to register a undertaking.

The three accounts ought to be a set account for the undertaking, a separate account for the undertaking, and a transaction account for the undertaking.

Separate accounts

The promoter should primary the gathering account to obtain all of the collections from the allottees, together with parking, facilities, and different fees excluding all different taxes and statutory duties. The separate checking account is the place 70 per cent of the quantities realised for the undertaking from the allottees acquired within the Assortment Account shall be deposited. The quantity deposited on this account shall solely be used to cowl theconstruction and the land price. Transaction Account is an account to be maintained by the promoter for transferring as much as 30 per cent of the entire collections acquired within the assortment account of the undertaking.

Shopper pursuits

In response to the paper, having separate financial institution accounts safeguards shopper pursuits, ensures compliance, and promotes transparency, accountability, and monetary self-discipline. It’s also anticipated to make sure uniformity within the operation and upkeep of the undertaking’s financial institution accounts and standardise official utilisation of funds deposited within the separate checking account.

No withdrawals or debits are allowed from the gathering account by means of cheques, debit playing cards, bank cards, web banking, or every other funds apart from an auto sweep facility to switch a minimal of 70 per cent to the separate checking account.

The separate checking account can also be the place all of the unsecured and secured loans to finance the undertaking could be deposited. It ought to be free from all encumbrances and never an escrow account. The quantity from this could solely be withdrawn by the promoter.

The cash within the transaction account can be utilized to fulfill bills apart from these instantly associated to the land and improvement prices of the undertaking.

Any adjustments to the financial institution accounts, resembling from transferring from one financial institution or department to a different would require approval from RERA.

As soon as the undertaking is full, the separate checking account may be closed, for which an software needs to be made. The promoter can withdraw any quantity remaining within the account after paying all dues after approval.

The banks the place the accounts are opened are answerable for flagging any suspicious transactions within the accounts to the Authority. All stakeholders should submit public feedback by April 15.