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

11 Mar 2026

India Expands Semiconductor Training To 500 Institutions

Under the Chips to Startups programme of the India Semiconductor Mission, the Union minister responsible for Railways, Information and Broadcasting, and Electronics and IT reported notable progress in talent development. He indicated that over the past four years substantial steps have been taken towards a 10-year target of training 85,000 engineers in semiconductor design. World-class EDA tools have been deployed in 315 academic institutions across the country to provide students with practical exposure to chip design. These EDA tools are supported by leading global firms and are accessible t..

Infrastructure Urban

11 Mar 2026

Delhi Institutions Support India Semiconductor Mission

The Government of India has prioritised talent development through training, upskilling and workforce development under the Chips to Startups initiative of the India Semiconductor Mission, with officials noting progress in four years towards a 10-year target of training 85,000 engineers in semiconductor design. Electronic design automation tools provided by Synopsys, Cadence, Siemens, Renesas, Ansys and AMD have been deployed in 315 academic institutions, enabling students to gain practical chip design experience. Chips have been fabricated and tested at the Semiconductor Laboratory, Mohali, a..

Infrastructure Urban

11 Mar 2026

NHA Announces Winners Of NHCX Hackathon At IIT Hyderabad

The National Health Authority (NHA) has concluded the NHCX Hackathon under the Ayushman Bharat Digital Mission (ABDM) to stimulate innovation around the National Health Claims Exchange (NHCX). The winning teams presented their solutions at the NHCX Innovation Meet held at IIT Hyderabad during a two-day event in March 2026 that also served as the hackathon grand finale. The hackathon itself ran from 22 to 28 February 2026 and aimed to accelerate paperless, transparent claims processing across India. The event was organised with a range of ecosystem partners, including the Insurance Regulatory a..