Real Estate · RERA
MahaRERA compliance for promoters and developers
Every MahaRERA-registered project runs on a money trail that the regulator can check: what buyers paid, where it went, and how much could be withdrawn at each stage of construction. Our work for promoters and developers keeps that trail clean and certified.
What we handle for promoters
- Form 3 withdrawal certificates for withdrawals from the project's separate account, based on cost incurred and percentage of completion.
- Form 5 annual report on the statement of accounts, certifying that amounts collected for a project were used for that project.
- Setting up and reviewing the three-account structure required by MahaRERA, including the automatic 70:30 transfers.
- Project cost and completion reconciliations that support each certificate.
- GST and income-tax implications of project structures, including joint development and redevelopment arrangements.
How the 70% rule works
Under Section 4(2)(l)(D) of the Real Estate (Regulation and Development) Act, 2016, 70% of the amounts realised from allottees must be deposited in a separate account with a scheduled bank. That money covers the cost of construction and land, and can be withdrawn only in proportion to the percentage of completion of the project.
Each withdrawal needs certificates from an engineer, an architect and a Chartered Accountant in practice. The Chartered Accountant's certificate is Form 3.
The three accounts MahaRERA now requires
| Account | What goes in |
|---|---|
| Collection account | 100% of payments from allottees, other than taxes and pass-through charges |
| Separate account | 70% of collections, transferred automatically from the collection account |
| Transaction account | The remaining 30%, transferred automatically |
These directions apply from 1 July 2024. All three accounts must be in a scheduled bank.
For housing societies and flat buyers
The same records tell a society or a buyer how a developer is managing project money. We review a developer's MahaRERA disclosures as part of builder verification and redevelopment due diligence. Read our note on what flat buyers should check before paying.
Frequently asked questions
Who can issue the Form 3 withdrawal certificate?
When is the Form 5 annual report due?
Can a promoter run a project from one bank account?
To discuss a project, WhatsApp +91 98707 88610, call 022 4506 6673, or write to cakaminivarma@gmail.com.
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.