MahaRERA has sent show cause notices to 45 developers, notices are also being sent to others. Preventive measures taken by MahaRERA and prior permission for the account are also essential to prevent this from happening in the future.
Under Section 4(2)(I)(d) of the Real Estate Act 2016, it is mandatory to have a single bank account for the project of one registration number for the proper completion of the housing projects registered. Meanwhile, the irregularity of 1781 projects linking their bank accounts to more than one project has come to light in the MahaRERA probe.
MahaRERA has taken cognizance of these irregularities and has so far issued show cause notices to 45 such projects. Show cause notices are also being sent to remaining projects.
In order to prevent this from happening in the future, changes have been made in the computer system so that if an attempt is made to link the designated account of one project with the bank account of another project, it will be blocked and cannot be done. Apart from this, now if the developer tries to change the mutual account, that will not happen. Now the MahaRERA issued a new order making the prior approval of the MahaRERA essential for this change.
A built-in discipline should be created in the real estate sector. MahaRERA is meant to bring financial discipline and transparency in the real estate sector so that the investment of every home buyer and similar investors in the sector is safe, the credibility of the real estate sector increases. That is why Maharera has started this micro-control claims the authority.
As per the Real Estate Act, the developer is required to maintain only one bank account with one RERA registration number.
The money received from registration in the respective project should be kept in this account only and used for the work of that project only. Elsewhere it should not be diverted. Because if this happens it can have an adverse effect on the project.
Not only this, the developer is also required to keep 70 percent of the money received from the registration of that project in this account. While working on this project, for withdrawing money from this account at each stage, unless the Project Engineer, Project Architect and Project Auditor have a certificate about how much the project has been completed, how much is left, how much money is needed. No withdrawals can be made from this account unless so certified.
Small and large housing projects are going on in the state. MahaRERA has taken steps for micro control of these projects. Financial transactions related to the projects are closely controlled by MahaRERA. MahaRERA has highlighted this irregularity by studying the information submitted by the developers themselves to MahaRERA.
Maharera has taken cognizance of this irregularity and by issuing show cause notices to all, they have been directed to submit all the details of the total number of flats in each project, the number of flats sold, the money received, the money withdrawn from the bank along with the evidence. Against this backdrop, after understanding the statement, further appropriate action will be taken.
Last week, MahaRERA red-flagged 313 projects and began a more thorough inspection of them. Show cause notices have already been issued to all these 313 projects. They are under scrutiny.
Also Read: 313 major projects on MahaRERA’s radar for anomalies
