Form 3 is the chartered accountant’s certificate that lets a Maharashtra promoter withdraw money from the RERA designated (70%) account. The amount it allows is the total estimated land and construction cost multiplied by the share of that cost already incurred, minus everything withdrawn before. In plain terms, cumulative withdrawals can never exceed the certified land and construction cost actually spent.
The rule comes from section 4(2)(l)(D) of the RERA Act, and the arithmetic from rule 5 of the Maharashtra RERA Rules 2017 and the Form 3 format MahaRERA published on 29 December 2021. This article covers Maharashtra only; in another state, read that state’s rules and forms.
What does the Act require?
Section 4(2)(l)(D) says seventy per cent of the amounts realised from allottees “shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose”. The provisos add three conditions:
- withdrawals must be “in proportion to the percentage of completion of the project”;
- each withdrawal must first be certified by an engineer, an architect and a chartered accountant in practice;
- the accounts must be audited by a chartered accountant within six months after the end of every financial year.
Who certifies what
| Certificate | Signed by | What it certifies |
|---|---|---|
| Form 1 | Architect | Percentage of completion of construction of each building or wing |
| Form 2 | Engineer | Actual cost incurred on construction work |
| Form 3 | CA (practice) | Land and construction cost incurred, and the amount withdrawable |
| Form 5 | Statutory auditor | Annual report on how the project’s money was used |
The CA who signs Form 3 should be a different entity from the statutory auditor (Explanation 1 to regulation 4 of the MahaRERA General Regulations 2017). MahaRERA’s Circular 39/2021 asks promoters to give the three certificates to the bank at every withdrawal and to upload copies to MahaRERA.
How Form 3 works out the amount
Form 3 builds up to the withdrawal in two tables:
- Table A, estimated cost: land cost (land value, premiums, TDR, stamp duty, rehabilitation) and development cost (the engineer’s estimate of construction, other development costs, taxes and interest on construction finance), adding up to the total estimated cost.
- Table B, cost incurred: land cost incurred, plus construction cost incurred taken as the
lower of the engineer’s figure and the figure in the books verified by the CA. Then:
- row 4: proportion of cost incurred to the total estimated cost;
- row 5: amount that can be withdrawn = total estimated cost × row 4;
- row 6: less amounts withdrawn till date;
- row 7: net amount that can be withdrawn under this certificate.
Rule 5(1)(i)(b) of the Maharashtra rules says the same in words: the total estimated cost multiplied by the proportion of cost incurred “shall determine the maximum amount which can be withdrawn”.
A worked example (sample figures)
A sample project, all amounts in ₹ crore:
| Table A: estimated cost | ₹ crore |
|---|---|
| Land cost | 40 |
| Development cost | 110 |
| Total estimated cost | 150 |
| Table B: cost incurred | ₹ crore |
|---|---|
| Land cost incurred | 40 |
| Construction cost: engineer’s figure 46, books 48; take the lower | 46 |
| Total cost incurred | 86 |
| Proportion of cost incurred (86 ÷ 150) | 57.33% |
| Amount that can be withdrawn (150 × 57.33%) | 86 |
| Less: withdrawn till date | 70 |
| Net amount withdrawable under this certificate | 16 |
Two things follow from the arithmetic:
- Row 5 always equals the cost incurred. Multiplying the total estimate by the share already incurred gives back the cost incurred. So the useful question is simply: how much land and construction cost has been spent and certified, and how much has already come out?
- The lower construction figure wins. If the books show ₹48 crore but the engineer certifies ₹46 crore, the ₹2 crore gap stays in the account until the engineer’s next certificate catches up.
The net amount is a ceiling, not a cheque. You can only withdraw what is actually in the designated account; Table E of the form records its opening balance, deposits, withdrawals and closing balance.
Three accounts for newer Maharashtra projects
For projects registered after 1 July 2024, MahaRERA Order 56/2024 requires three accounts in one scheduled bank before applying for registration: a collection account that receives all allottee payments (excluding taxes and statutory duties), the separate account that receives seventy per cent, and a transaction account that receives up to thirty per cent. Form 3 withdrawals come from the separate account.
Mistakes that delay withdrawals
- Construction cost in the books running ahead of the engineer’s certificate, so the CA has to use the lower figure.
- Taxes and statutory duties paid into the designated accounts and then treated as project receipts.
- A different CA signing Form 3 without the earlier withdrawals reconciled.
- Certificates given to the bank but not uploaded to MahaRERA.
How LoftRay supports Form 3
LoftRay classifies every receipt and payment for the RERA designated account, routes withdrawal requests through approval, records the transfer instructions and the certificates behind each withdrawal, and produces the quarterly pack as PDF and Excel for your CA. The rules that decide what counts as land and construction cost are set up with your CA and signed off by a second person before use; LoftRay does not come with ready-made RERA rules.