Blog · Real Estate
MahaRERA's three-account rule: what flat buyers should check before paying
A payment demand from your builder now tells you more than the amount due. Since 1 July 2024, the bank account named on it should follow a specific MahaRERA format. If it doesn't, ask why before you pay.
What changed
MahaRERA requires every registered project in Maharashtra to run three accounts in a scheduled bank:
- Collection account: receives 100% of what buyers pay, other than taxes and pass-through charges.
- Separate account: receives 70% of collections automatically. This money is for construction and land cost, and can be withdrawn only as construction progresses.
- Transaction account: receives the remaining 30% automatically.
The account names follow a set pattern: the promoter's name, then "Collection Account for", then the project name.
Four checks before you pay
- Read the account name on the demand letter. It should be the project's collection account, in the format above.
- Match it with the project's MahaRERA page. The registration details on the MahaRERA website should relate to the same project.
- Pay only into that account. Not into a group company, a director's account or a "temporary" account.
- Keep taxes separate. GST and stamp-duty-type pass-through charges are handled outside the collection account, so your receipt should show them separately.
Why it matters
The 70% held in the separate account is what protects buyers if a project slows down. It can come out only against certificates from an engineer, an architect and a Chartered Accountant confirming the stage of completion. Money paid into the wrong account never enters that protection.
For societies going into redevelopment
The sale component of a redevelopment project is registered with MahaRERA like any other project. A society's managing committee can use the same records to see how the developer is handling buyers' money on the sale flats.
This page is general information on the law as it stood when written, not professional advice for any specific case. Rules, forms and due dates change; check the current position before acting.