Mumbai: An analysis of the projects registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA) showed that 1,781 of them have violated the rule by having the same bank account for multiple projects.
“There are 1,781 projects where the same designated bank account details have been updated for multiple projects. For this irregularity, the MahaRERA has sent show cause notices to 45 developers and more notices will be sent in the days to come,” shared a MahaRERA official.
Appropriate action will be taken
In the show cause notices issued, the regulator has sought details such as total flats in the project, units sold, receipts, withdrawals, etc. Appropriate action will be initiated after a review of replies and supporting documentation sent in response to the show cause notices.
After the issue came to light, the software has been updated so as to avoid the same designated bank account details being updated against another registered project. In case a developer attempts to key in the same bank account for another project, the system will block the application.
The rules of the regulatory authority state that every project registered with MahaRERA should have a separate designated bank account. In other words, for each of the RERA registration numbers, one bank account is to be maintained. The money received from registration of the respective project should be kept in this dedicated account and used for the work of that particular project only. If the funds are diverted, it will have adverse effects on the project and legal consequences. The developer is also required to keep 70% of the money received from the sales of the project in this account.
