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^[- AFFORDABLE HOUSING WELFARE ORGANAISATION OF INDIA
A-1/207, Laram Center, Opp. Railway Station, Near Bus Depot, Andheri (W), Mumbai - 400 058.
Tel.: + 91- 4255 1414 | 24 | 32 | M.: 9820106766 | 68 | Email : rsprabhu13@gmail.com

Date : 12th July, 2024

FOREWORD

Dear Professional Colleagues and Real Estate Stakeholders,

I congratulate CA Samir Sanghavi and his team for bringing out a detailed write-up on Order No.56 dated 29/06/2024 issued by MahaRERA.

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This Order No.56 is applicable to all the MahaRERA Real Estate registered Projects effective from 1 July 2024. This Order No.56 has prescribed in detail
about the 03 bank accounts to be opened for each project in the same scheduled bank. Similarly, in the case of area sharing provided to the land owner, who
in turn intends to sell their area of apartments, each of such land owners are also required to open 03 bank accounts and it should be in the same bank.

The Order No.56 also has prescribed in detail the role and representation of bankers, promoter, allottees and the professionals. All these provisions have
rd
been described in lucid manner by the following team of Samir Sanghavi & Associates, a Chartered Accountants rm, at 305/306, Vaibhav Chambers, 3
Floor, Opp. Income Tax Ofce, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051:

1. CA Samir Sanghavi, Team Leader

2. CA Juzar Meeyajiwala, Study Group Member
3. CA M. H. Murlidhar, Study Group Member
4. CA Suketh Sheth, Study Group Member
5. CA Nitish Shah, Study Group Member
6. CA Vishal Shah, Study Group Member

You may contact them directly for any clarication on 0091-22-50623918 or info@samirsanghavi.com

Jai Hind, Jai Maharashtra!

CA. Prabhu Ramesha,

National President,
Affordable Housing Welfare organisation of India.
 PRIVILEGED & CONFIDENTIAL

SAMIR SANGHAVI & ASSOCIATES

CHARTERED ACCOUNTANTS
BKC • FORT • PANVEL • PUNE
info@samirsanghavi.com

compiled in collaboration with

LAW POiNT
ADVOCATES & SOLICITORS
https://lawpointindia.com

▪ Samir Sanghavi, FCA ▪ Juzar Meeyajiwala, FCA

▪ M. H. Murlidhar, FCA ▪ Suket Sheth, CA
▪ Nitish Shah, FCA ▪ Vishal Shah, CA

UPDATES ON MAINTENANCE AND OPERATION OF BANK ACCOUNTS OF RERA PROJECTS

SAMIR SANGHAVI & ASSOCIATES
Chartered Accountants
REGISTERED ON OR AFTER 1ST JULY 2024
Page 1 of 15
 UPDATES ON MAINTENANCE AND OPERATION OF BANK ACCOUNTS OF RERA PROJECTS
REGISTERED ON OR AFTER 1ST JULY 2024

MahaRERA vide Order No -56/2024 dated 27th June 2024 has issued new guidelines on maintenance and

operation of multiple bank accounts for the project registered with MahaRERA after 1st July, 2024 :

I. OPENING OF RERA PROJECT BANK ACCOUNTS :

The Promoter shall open following three (3) project bank accounts in single scheduled bank before
applying for the registration of the project and give details thereof at the time of registration : -

1. RERA Designated Collection Bank Account of the Project (100%)

2. RERA Designated Separate Bank Account of the Project (70%)

3. RERA Designated Transaction Bank Account of the Project (30%)

➢ All RERA Bank accounts shall be opened in same bank.

➢ The Promoter shall furnish/publish particulars of the “RERA Designated Collection Bank Accounts”
of the project in the Allotment letter and agreement for sale with the existing prospective homebuyers
for the purpose of receiving payments towards their unit in the registered project

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 1 of 15
The name of the all three Bank Accounts shall contain name of the project prescribed in the following
manner:
Assumptions: (i) Name of the Developer Promoter is “ABC Pvt Ltd”
(ii) Name of the Land Owner Promoter is “DEF”
(iii) Name of the Joint Developer Promoter is “PQR Ltd”
(iv) Name of Project is “XYZ”
Bank Account Names:
For Developer Promoter ABC Pvt Ltd will be as under:

(a) ABC Pvt Ltd RERA Designated Collection Bank Account for XYZ OR
ABC Pvt Ltd RERA Designated Master Bank Account for XYZ (in case of Revenue Share)
(b) ABC Pvt Ltd RERA Designated Separate Bank Account for XYZ
(c) ABC Pvt Ltd RERA Designated Transaction Bank Account for XYZ

For Land Owner Promoter DEF will be as under:

(a) DEF RERA Designated Collection Bank Account for XYZ
(b) DEF RERA Designated Separate Bank Account for XYZ
(c) DEF RERA Designated Transaction Bank Account for XYZ

For Second Developer Promoter PQR Ltd will be as under:

(a) PQR Ltd RERA Designated Collection Bank Account for XYZ
(b) PQR Ltd RERA Designated Separate Bank Account for XYZ
(c) PQR Ltd RERA Designated Transaction Bank Account for XYZ
SAMIR SANGHAVI & ASSOCIATES
Chartered Accountants
Page 2 of 15
➢ The excess monies lying in the RERA Designated Separate Bank Account can be put in fixed deposits
with the bank operating all three RERA Designated bank Accounts and which has to be a no lien Fixed
Deposit and no loan can be obtained against or on such fixed deposit nor any charge can be created on
such fixed deposit as prescribed in MahaRERA Circular bearing No. 07/2017 dated 4 July 2017.

➢ Banks shall issue two copies of the letter in the format provided in Format B upon opening of the
accounts. One copy of the letter to be given to the promoter shall upload the letter on his web portal
which is visible to MahaRERA.

➢ No debits or withdrawals shall be permitted by means of cheque, debit card, credit card, internet
banking facility, or any other payment methods (eg. Demand Draft (DD), bank guarantee etc.) or any
means of instruments, except through an auto sweep facility to transfer the amount deposited in RERA
Designated Collection Bank Account’ and ‘RERA Designated Master Bank Account’ (in case of Revenue
Share).

➢ Banks should follow strictly the nomenclature as prescribed in these directions.

➢ Banks to take a written standing advise from Promoters at the time of opening of the three (3) account
for auto-transfer of funds deposited in the ‘RERA Designated Collection Bank Account of the Project’ in
a proportion of 70 : 30 to ‘RERA Designated Separate Bank Account of Project’ and “RERA Designated
Transaction Bank Account for the Project”.

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 3 of 15
II. WITHDRAWALS PROCESS AS PER THE GUIDELINES :
RERA Designated Collection Bank Account for Project (100%)
(excluding of GST, Stamp duty, Registration charges and pass through charges if any)
(No Debit or withdrawals by means of cheques, debit card, credit card, internet banking facility or any other payment methods e.g.
Demand Draft (DD), bank guarantees, etc. or any means of instruments method)

Auto Sweep

RERA Designated Separate Bank RERA Designated Transaction

Account for Project (70%) Bank Account for Project (30%)

Designated Separate Account Designated Transaction Account

Costs that can be withdrawn as per CA Certificate in Form 3 Costs that can be withdrawn
o Development Cost o RERA Penalties
o Land Cost o Interest /Compensation payments to allottees
o Refund amount to allottees up to 70% o Refund amount to allottees with compensation
o Interest on loan for the project o Marketing and Brokerage Expenses
OR o Any other expenses not directly related to the land
Equivalent Transfer to RERA Designated Transaction and construction cost/ development cost of the
Account (not exceeding amount as per Form 3) project

Highlights Highlights
To be kept Free from all encumbrances. No restriction of withdrawal, charge or mortgage.
Should not be an escrow account, free from lien, loans and third May be Escrow, subject to lien and Third Party control
part control i.e. (lender / bank/ financial institution).
cannot be attached by any other government authority / body Can be attached by any other Government Authority/ Body.
without the order of MahaRERA Authority.

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 4 of 15
III. AREA SHARE/REVENUE SHARE WITH MULTIPLE PROMOTERS :

1. For a registered project which has multiple promoters, one of the Promoter, under necessary contractual

or legal arrangement or Joint declaration shall be responsible for registering the project under MahaRERA

and shall also be responsible for updating all the data and all other compliances as prescribed in the Act,

Rules and Regulations and he shall be called “Designated Promoter” for the purpose of this circular.

2. In case of multiple promoters, necessary contractual or legal arrangements should be made by the

Designated Promoter in the terms of Development Agreement, Joint Development Agreement , Joint

Venture Agreement, etc. and disclose it on MahaRERA portal.

3. The designated promoter shall submit declaration incorporating standing advice given to the bank for

auto-sweep transfer facility to transfer the amount deposited in this account to the “RERA Designated

collection bank accounts” of each promoter as per their share as mentioned in the contractual or legal

arrangements of promoters and shall be disclosed at time of registration of the Project with MahaRERA.

4. In case of Revenue Share Agreement where there are multiple promoters with revenue share, the

designated promoter shall furnish the particulars of “RERA Designated Master Bank Account” in the

allotment letter and agreement for sale with the existing & prospective homebuyers.

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 5 of 15
IV. AREA SHARE UNDER JOINT DEVELOPMENT AGREEMENT :

Each Promoter entity, who are entitled to share Area in the Project as per their mutual agreement,
should open three (3) bank accounts as stated hereinabove in single scheduled bank before applying for
the project.

All Promoters shall deposit the sales proceeds realized from the allottees for their respective Area Share
shall follow the following process:

Land Owner (DEF) for his entitled Units Developer (ABC Pvt Ltd) for his entitled Units
e.g. 15% of Total area e.g. 85% of Total area
DEF RERA Designated Collection Account for XYZ ABC Pvt Ltd RERA Designated Collection Account for XYZ
(100%) (100%)

Auto Sweep Auto Sweep

DEF RERA DEF RERA ABC Pvt Ltd RERA ABC Pvt Ltd RERA
Designated Designated Designated Designated
Separate Account Transaction Separate Account Transaction
for XYZ Account for XYZ for XYZ Account for XYZ
(70%) (30%) (70%) (30%)

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 6 of 15
 V. REVENUE SHARE UNDER JOINT DEVELOPMENT AGREEMENT :

In case of multiple promoters sharing revenue, the Promoters shall mutually agree to appoint one promoter as a
Designated Promoter who shall open a “RERA Designated Master Account” where 100 % money from
homebuyers will be collected and through the auto-sweep facility, the moneys will be transferred to the “RERA
Designated collection bank accounts” of each promoter as per their share as mentioned in the contractual or
legal arrangements of the promoters and process as under:
Designated Master Account [100%]
(excluding of GST, Stamp duty, Registration charges and pass through charges if any)
ABC LTD RERA Designated Master Account for XYZ
Auto Sweep

Designate Promoter ABC Ltd Land Owner Promoter - DEF Other Promoter- PQR Pvt Ltd
ABC Ltd RERA Designated Collection DEF Designated Collection PQR Pvt Ltd RERA Designated Collection
Account for XYZ – ____ % revenue share Account for XYZ – ___% revenue share Account for XYZ – ___ % revenue share

Auto Sweep Auto Sweep Auto Sweep

ABC Ltd RERA Designated ABC Ltd RERA DEF RERA Designated DEF RERA Transaction PQR Pvt Ltd RERA PQR Pvt Ltd RERA
Separate Account for XYZ Transaction Account for Separate Account for XYZ Account for XYZ Designated Separate Transaction Account for
(70%) XYZ (30%) (70%) (30%) Account for XYZ (70%) XYZ (30%)

Note:
1. Bank shall take a written standing advise from Promoters at the time of opening of the “RERA Designated Master Account” for auto-sweep facility to
transfer funds to the “RERA Designated Collection Bank Accounts for the Project” and “RERA Designated Transaction Bank Account for the Project”
of each promoter as per their share as mentioned in the contractual or legal arrangements of promoters.
2. Where there are multiple promoters, the percentage of withdrawal of the amount, as certified by the Chartered Account (CA Certificate) of the
designated promoter, and applicable to the separate bank account of the designated promoter shall also be applicable to the separate bank accounts
of all promoters.
3. Form 3 i.e. CA Certificate shall cover cost of the developer and the owner as well as aggregate cost.

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 7 of 15
VI. BANK LOANS :

1. To ensure that the ‘RERA Designated Master Account’(for Revenue Share), ‘RERA Designated Collection
Bank Account’ and “RERA Designated Separate bank account” of the project shall be free from all
encumbrances and should not be an escrow account and free from lien, loans and third-party control i.e.
lender/bank/financial institution. Attachment by any other government authority/body shall only be with
the order of MahaRERA.

2. All the secured and unsecured loan amount to finance the project may be deposited in the RERA
Designated Separate Bank or any other bank account. (In the event of such deposit being made in RERA
Designated Separate Bank reconciliation/matching of the deposits and withdrawal under CA certificate
will not be possible , Therefore ideally loan amount should not be deposited in RERA Designated Separate
Bank).

3. The promoter shall submit following disclosure for existing/proposed Secured/unsecured finance availed
for the project by mortgaging land or building/flat or both and serve the loan interest from ‘RERA
Designated Separate Bank Account’ :

i. Name of the Lender

ii. Address of the lender

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 8 of 15
 iii. Date of borrowing/disbursement

iv. Sanctioned Amount

v. Disbursed Amount

vi. Outstanding Amount

vii. Details of Mortgage (if any)

viii. Declaration of CA certifying that loan amount is used for this project only

4. CERSAI Report for secured loans (if any) as prescribed in the MahaRERA order no. 26/2021 dated
29.10.2021.

5. Banks shall ensure that “RERA Designated collection bank accounts” and “RERA Designated separate
bank accounts” of the project shall be free from all encumbrances and should not be an escrow account
and free from lien, loans and third party control i.e. Lender/bank/financial institution. These two
accounts cannot be attached by any other government authority/body without the order of MahaRERA.

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 9 of 15
VII. GENERAL POINTS :

1. To suspend withdrawals/transfers from all the accounts of the Project upon lapse of registration
as per RERA Registration Certificate which can be revived only in the event where RERA has
granted extension to the registration.

2. To freeze/de-freeze the project accounts immediately on receipt of any order with regards the
same from MahaRERA.

3. Designated Promoter will be liable to update on MahaRERA portal.

4. Non-compliance of these directions by the Promoter in any manner will be punishable under
section 60 and 63 of the RERA Act.

5. All Certificates issued by CA shall contain UDIN issued separately for each certificate.

6. The transfer/change of project Accounts from schedule Bank/branch to another shall be

permitted only with prior written approval of the authority.

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 10 of 15
 7. On completion of project and grant of Full occupancy certificate. The Promoter shall upload
following documents:

(i) Occupancy Certificate/completion certificate from competent authority;

(ii) Form-4, Architect certificate of completion as prescribed under the regulations.

On submission of Form 4 the technical officer shall verify the completeness and correctness
of Form 4 and occupation certificate and the bank accounts shall be closed.

8. Banks shall suspend withdrawals/transfers from all the accounts of the Project upon lapse of
registration. However, the bank account shall remain operational only in the event when RERA
has granted extension to the registration.

9. In the eventuality of any orders of the authority for freezing/de-freezing of any of the project
accounts, the banks shall immediately comply with such order and shall accordingly freeze/de-
freeze the concerned account(s).

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 11 of 15
VIII. MAJOR DEPARTURE FROM EXISTING REGIME :

1. Now all 3 project accounts need to disclosed at the time of registration of Project; earlier only
RERA account i.e. (70% account) was required to be reported to MahaRERA on registration of the
project.

2. No Lender can create lien or mortgage or create charge or Control the RERA Designated Separate
Bank Account (70%) of the Project. But they can have charge and take control of RERA
Designated Transaction Bank Account (30%) including amounts already withdrawn from RERA
Designated Separate Bank Account and deposited in Transaction Bank Account.

3. Revenue Share:

a. Currently Promoter (Developer) was required to operate one RERA Collection Bank Account ,
Separate Bank Account (70%) and Other Account (30%) for whole project in Revenue share
but now each Promoters (Land Owner, Developer or Joint Developer as case maybe) shall be
required to open all 3 accounts viz. RERA Collection Bank Account, RERA Designated
Separate Bank Account (70%) and RERA Designated Transaction Bank Account (30%)
separately in respect of every project;

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 12 of 15
 b. Where there are multiple promoters, the percentage of withdrawal of the amount, as
certified by the Chartered Account (CA Certificate) of the designated promoter, and
applicable to the separate bank account of the designated promoter shall also be applicable
to the separate bank accounts of all promoters;

c. Under the existing Joint Development Agreement (Revenue Share),If any phase(s) is yet to be
registered under RERA then Supplementary Agreement amongst promoter will be required
to be executed so as to comply with the directions of new MahaRERA order no 56 /2024
dated 27th June, 2024;

d. Meticulous business plan and diligent cash flow planning will be necessary prior to
registration of projects with RERA so as to ensure smooth withdrawal process by all the
promoters.

***

SAMIR SANGHAVI & ASSOCIATES

Chartered Accountants
Page 13 of 15
 Thank You

SAMIR SANGHAVI & ASSOCIATES

CHARTERED ACCOUNTANTS
BKC • FORT • PANVEL • PUNE
info@samirsanghavi.com