MahaRera freezes 40+ builder accounts

21 Sep 2023 CW Team

These bank accounts, known as escrow accounts, are specifically designated for individual construction projects by the builders. Similar actions have been taken across the state and other regions, and the affected project names are expected to be posted on the MahaRera website soon.

This move follows persistent non-compliance by builders in filing quarterly returns. The process commenced earlier this year with the issuance of initial notices and culminated in the freezing of accounts. Rera officials emphasise that freezing escrow accounts is a direct consequence of builders failing to submit their returns. Once a quarter concludes, builders receive a 15-day notice, and if returns are still not filed, their accounts are seized after a 45-day grace period. All projects covering an area of 5,000 square feet or more are required to be registered with Rera.

Per the regulations, 70% of the funds received by a builder from buyers must be kept in an escrow account, specifically earmarked for the construction of the respective project. This measure aims to prevent the diversion of funds to other purposes, explains Sanjay Bhimanwar, deputy secretary and head of the Rera office in Nagpur. The accounts will only be unfrozen once the required returns are submitted.

Builders are also obligated to provide quarterly progress reports, detailing the work completed, the number of flats sold, the amount spent, and other relevant information. This transparency helps Rera ensure that funds are utilised solely for the designated project and prevents the sale of the same unit to multiple buyers.

Initially, MahaRera took a lenient approach towards builders, recognising the impact of the pandemic on many businesses. Some builders had even passed away due to Covid, with their businesses taken over by their heirs. After allowing ample time for compliance, Rera began issuing notices and summoning builders, ultimately resulting in the freezing of accounts. This process is ongoing, with a focus on addressing the backlog of non-filers up to February. Accounts will be frozen in line with the prescribed procedure, with some builders also facing fines for non-compliance.

Keywords:

In a firm response to builders, the Maharashtra Real Estate Regulatory Authority (MahaRera) has taken decisive action by freezing the bank accounts of more than 40 real estate projects in the Nagpur division. These projects are located in various districts of eastern Vidarbha, including Nagpur city, Wardha, Bhandara, Gondia, Gadchiroli, and Chandrapur, all falling under the Nagpur division.These bank accounts, known as escrow accounts, are specifically designated for individual construction projects by the builders. Similar actions have been taken across the state and other regions, and the affected project names are expected to be posted on the MahaRera website soon.This move follows persistent non-compliance by builders in filing quarterly returns. The process commenced earlier this year with the issuance of initial notices and culminated in the freezing of accounts. Rera officials emphasise that freezing escrow accounts is a direct consequence of builders failing to submit their returns. Once a quarter concludes, builders receive a 15-day notice, and if returns are still not filed, their accounts are seized after a 45-day grace period. All projects covering an area of 5,000 square feet or more are required to be registered with Rera.Per the regulations, 70% of the funds received by a builder from buyers must be kept in an escrow account, specifically earmarked for the construction of the respective project. This measure aims to prevent the diversion of funds to other purposes, explains Sanjay Bhimanwar, deputy secretary and head of the Rera office in Nagpur. The accounts will only be unfrozen once the required returns are submitted.Builders are also obligated to provide quarterly progress reports, detailing the work completed, the number of flats sold, the amount spent, and other relevant information. This transparency helps Rera ensure that funds are utilised solely for the designated project and prevents the sale of the same unit to multiple buyers.Initially, MahaRera took a lenient approach towards builders, recognising the impact of the pandemic on many businesses. Some builders had even passed away due to Covid, with their businesses taken over by their heirs. After allowing ample time for compliance, Rera began issuing notices and summoning builders, ultimately resulting in the freezing of accounts. This process is ongoing, with a focus on addressing the backlog of non-filers up to February. Accounts will be frozen in line with the prescribed procedure, with some builders also facing fines for non-compliance.Keywords:

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..