MahaRERA Proposes Stricter Financial Guidelines for Real Estate Projects

In a move geared towards enhancing transparency and safeguarding the interests of homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced draft guidelines mandating the maintenance of three distinct bank accounts for every housing project. The proposed categorization, comprising 'Collection Account,' 'Separate Account,' and 'Transaction Account,' aims to streamline financial operations and ensure compliance, efficiency, and accountability. Under these guidelines, funds will be allocated and utilized in a structured manner, delineating between different project expenses and revenue sources.

Ensuring Financial Discipline and Homebuyer Protection

The draft guidelines stipulate clear protocols for fund utilization, with 70% of revenue from the project directed to the 'Separate Account' for covering essential costs like land, construction, and buyer refunds. Meanwhile, the 'Transaction Account' will handle up to 30% of project revenue, addressing miscellaneous expenses and penalties. Furthermore, banks are entrusted with maintaining these accounts free from encumbrances and escrow, with strict adherence to MahaRERA directives to ensure financial integrity throughout project lifecycles. These measures aim to curb past instances of fund diversion and mismanagement, fostering greater trust and accountability within the real estate sector.

Implications and Stakeholder Feedback

The proposed guidelines represent a significant step towards standardizing financial practices in real estate projects, bolstering transparency and accountability. Stakeholders are encouraged to provide feedback on the draft guidelines, available for review on the MahaRERA website until April 15th. While the guidelines hold promise for instilling discipline and protecting homebuyer interests, their effective enforcement will be pivotal in realizing the overarching goal of building trust and credibility in the real estate ecosystem. MahaRERA remains committed to fostering greater customer satisfaction and elevating industry standards through meticulous review and consideration of stakeholder input.

Source: www.propnewstime.com

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