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RERA 70% account withdrawal calculator (Form 3 estimate)
A promoter can withdraw from the RERA separate account up to total estimated cost × the proportion of that cost already incurred, less what was withdrawn before. For a project estimated at ₹40 crore that has spent ₹23.2 crore and withdrawn ₹18 crore, the next certificate can release about ₹5.2 crore.
This follows the arithmetic of MahaRERA’s Form 3 and Uttar Pradesh’s Form REG-3. It is an estimate to plan with; the chartered accountant’s certificate decides the real figure.
- Total estimated cost
- ₹40,00,00,000
- Cost incurred
- ₹23,20,00,000
- Proportion (row 4)
- 58%
- Withdrawable to date (row 5)
- ₹23,20,00,000
- Less already withdrawn (row 6)
- ₹18,00,00,000
- Net under this certificate (row 7)
- ₹5,20,00,000
70% of collections is ₹23,80,00,000; assuming that was deposited, about ₹5,80,00,000 is left in the account.
How to use the RERA 70% account withdrawal estimator
- Enter the project’s estimated land cost and construction cost.
- Enter the land and construction cost incurred to date, as your engineer, architect and CA will certify.
- Enter what has already been withdrawn from the 70% account; the balance and collections are optional.
- Tick the box if the completion or occupancy certificate has been received.
- Read the amount that can be withdrawn now; in Maharashtra it is released against Forms 1, 2 and 3.
Worked example: a ₹40 crore project, 58% of cost incurred
The rows of Form 3, filled in for the sample figures above.
| Form 3 line | Working | Amount |
|---|---|---|
| Table A: total estimated cost | ₹12 crore land + ₹28 crore construction | ₹40,00,00,000 |
| Row 3: cost incurred to date | ₹12 crore land + ₹11.2 crore construction | ₹23,20,00,000 |
| Row 4: proportion | ₹23.2 crore ÷ ₹40 crore | 58% |
| Row 5: withdrawable | ₹40 crore × 58% | ₹23,20,00,000 |
| Row 6: already withdrawn | Earlier certificates | ₹18,00,00,000 |
| Row 7: net withdrawable | Row 5 − row 6 | ₹5,20,00,000 |
The account check: ₹34 crore collected means at least ₹23,80,00,000 should have gone in. Less ₹18 crore withdrawn leaves about ₹5,80,00,000, which covers the ₹5,20,00,000 on this certificate.
How the withdrawal is calculated
Section 4(2)(l)(D) of the RERA Act makes the promoter deposit 70% of what buyers pay into a separate account, used only for land and construction cost. Money comes out in proportion to the project’s completion, after an engineer, an architect and a chartered accountant certify it.
Withdrawable = total estimated cost × (cost incurred ÷ total estimated cost) − amount already withdrawn
- Estimated cost is the land and construction budget declared at registration (Form 3 Table A). Pass-through charges and indirect taxes are left out.
- Cost incurred is the actual spend to date (Table B). For construction, Form 3 takes the lower of the engineer’s certified figure and the cost in the books.
- The balance in the account is a practical limit: the bank can’t release more than is there.
- On completion or occupancy certificate, the entire balance can be withdrawn.
What this estimate can’t see
Whether every cost qualifies, revisions to the estimate, and project-specific bank conditions. From 1 July 2024, MahaRERA projects use three accounts (collection, separate and transaction) with an automatic 70/30 sweep, and compensation to buyers comes from the transaction account, not the separate one.
Questions people ask
How much can a builder withdraw from the RERA 70% account?
Up to the total estimated cost of the project multiplied by the proportion of that cost already incurred, less everything withdrawn before. In practice this equals the land and construction cost incurred to date, minus earlier withdrawals. Each withdrawal needs certificates from an engineer, an architect and a chartered accountant.
What is Form 3 under MahaRERA?
Form 3 is the chartered accountant’s certificate for withdrawing from the separate (designated) account. It sets out the estimated cost, the cost incurred to date, the proportion between them, the amount that can be withdrawn, what has already been withdrawn and the net amount for this certificate. Form 1 comes from the architect and Form 2 from the engineer.
Is withdrawal based on physical progress or cost incurred?
The RERA Act says withdrawals are in proportion to the percentage of completion. Maharashtra’s rule 5 and Uttar Pradesh’s Form REG-3 measure that as cost incurred divided by total estimated cost, not the architect’s physical percentage. Other states may apply it differently.
What counts as land and construction cost?
Land cost includes the land value, premiums for FSI and development rights, TDR, stamp duty and rehabilitation costs. Construction cost includes building work, site overheads, statutory fees and interest on construction loans. Marketing and brokerage are excluded, and MahaRERA does not count income tax as project cost.
Can the whole balance be withdrawn once the building is complete?
Yes. Under Maharashtra’s rule 5, once the completion or occupancy certificate is received the entire balance in the separate account can be withdrawn.
Must exactly 70% of collections be deposited?
At least 70% of the amounts realised from buyers. For ongoing projects in Maharashtra, if the receivables are less than the cost still to be incurred, 100% of collections must be deposited.
Sources
Rates and rules last checked against the official sources below.
- Real Estate (Regulation and Development) Act 2016, section 4(2)(l)(D) (Gazette copy, MahaRERA) 70% of collections in a separate account; withdrawals in proportion to completion, certified by an engineer, an architect and a chartered accountant.
- Maharashtra RERA Rules 2017, rule 5(1)(i)(b) Total estimated cost × proportion of cost incurred is the most that can be withdrawn; the whole balance on completion.
- MahaRERA Form 3, chartered accountant’s certificate (format of 29 December 2021) Table A estimated cost, Table B cost incurred, rows 4 to 7.
- MahaRERA Circular 7/2017, clarification on CA certificates (4 July 2017) What counts as cost; marketing and brokerage excluded.
- MahaRERA Order 56/2024, separate bank account directions (27 June 2024) Collection, separate and transaction accounts with a 70/30 sweep from 1 July 2024.
- UP RERA (General) Regulations 2019, Form REG-3 The same cost-proportion formula in Uttar Pradesh.
- Completion is measured by cost incurred, as Maharashtra and Uttar Pradesh do. If your state measures it another way, check your state’s RERA rules.
- The withdrawal is limited to the balance in the account, as the bank applies it.