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By Dr. Sanjay Chaturvedi

B.A, LLB, Ph.D

On the pretext of having Escrow account, many bankers are now manipulating RERA norms to their favour. Banks refusing builders to convert existing current accounts into Escrow accounts. Many banks asking builders to open to accounts.Some of them saying that we shall not give you cheque books but only internet banking.Nationalised Banks refuse to open and operate escrow account all together under RERA. When contacted, ShriGautamChatterjee, Chairman Maharashtra RERA said “MahaRERA does not want any escrow account. It is for the promoter to designate any account as the separate account. Bankers have no role in this. MahaRERA also does not require any banker’s certificate or NOC”. MAHA RERA also have clarification that since accounts are subject to audits within six months of closure of accounts, it is not necessary to give any certificate to banker for such escrow accounts. Instead a self declaration format is given on MAHA RERA site to be given to statutory auditors.Banks and it’s Feild staff which also wanted to open new accounts and hold funds in current accounts without interest are making their own policies to milk RERA regime.

Hundreds of projects are waiting for registration just because banks do not cooperate.


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