W e aim to simplify complex legal updates for housing stakeholders. In this blog, we’ll break down a significant clarification issued by MahaRERA under Order No. 61/2024, dated 4th September 2024. This clarification addresses confusion that followed Order No. 56/2024, which came into effect on 27th June 2024, mandating that all real estate promoters maintain three designated bank accounts for project funds.
The earlier directive led to a widespread concern: Should landowners—who contribute land under a registered development agreement and receive area share or revenue share—also be bound by this triple-account requirement? This was especially unclear in joint development arrangements where multiple parties have varied roles. The recent order brings welcome clarity on this issue.
According to MahaRERA’s clarification, only the person or entity declared as a ‘promoter’ under Section 3 and 4 of the RERA Act needs to comply with the requirement of maintaining three designated bank accounts. This means if a landowner is not registered as a promoter in the MahaRERA application, they are not obligated to operate these accounts. This eliminates unnecessary compliance for landowners who are passive stakeholders in the development process.
Further, the order emphasizes that the term ‘Promoter’ must be interpreted in line with Section 2(zk) of the RERA Act, 2016, which provides a legal definition. This legal clarity ensures that financial obligations are imposed only on those who are actively steering the project as recognized promoters, not those who have simply offered land or capital under a joint agreement.
Order 61/2024 is effective immediately, which means its relief and clarification are applicable right away. This not only reduces the burden on non-promoter landowners but also aligns compliance expectations more accurately with each party’s legal responsibility. It’s a practical step that reflects MahaRERA’s responsive approach to stakeholder concerns.
What should you do now? If you’re a developer, ensure that only the declared promoter handles the mandatory project bank accounts. If you’re a landowner, review your development agreement and MahaRERA records to confirm whether you’re listed as a promoter. And if you’re a consultant or Chartered Accountant, guide your clients carefully to avoid over-compliance or misinterpretation of the law.
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