Calculator · finance

RERA 70% escrow calculator: what you can withdraw at the current completion

Collections to date, land and construction cost, certified completion and what you have already drawn give you the designated account balance, the cumulative entitlement and the amount withdrawable now.

Amounts realised against units sold, excluding GST.

Acquisition, premium, FSI/TDR and related charges.

Total, as in the project's cost estimate filed with RERA.

Per the engineer / architect / CA certificates.

Withdrawable now
₹2.76 Cr
₹11.76 Cr cumulative entitlement at 35% completion, less ₹9.00 Cr already drawn
Designated account (70%)
₹33.60 Cr
Freely usable (30%)
₹14.40 Cr
Still locked after this withdrawal
₹21.84 Cr
Cost incurred to date
₹19.95 Cr
35% of ₹57.00 Cr
This is the proportionate-to-completion rule in Section 4(2)(l)(D) applied to the account balance. Authorities require a certificate from the engineer, architect and chartered accountant for each withdrawal, and some states cap withdrawals against cost incurred rather than percentage complete. Treat the number as a planning figure, not a filing.

How the designated account works

RERA was written to stop money collected from buyers of one project being spent on another. The mechanism is the designated (often called escrow) account: 70% of every rupee realised from allottees goes into it, and comes out only against the land and construction cost of that project, in step with how much of the project is actually built.

In practice a promoter's finance team tracks three numbers: how much has been deposited, how much the certified completion entitles them to withdraw, and how much has already been withdrawn. The difference between the last two is what the next withdrawal application can ask for.

The calculation

  • Designated account = 70% × amounts realised from allottees
  • Cumulative entitlement = designated account × certified completion %
  • Withdrawable now = cumulative entitlement − already withdrawn

Cost incurred to date (land + construction cost × completion) is shown alongside because some authorities, and most bankers, reconcile withdrawals against cost incurred rather than against completion alone. If the two diverge sharply, expect the chartered accountant's certificate to be questioned.

What counts as completion

Percentage of completion is certified by the project engineer and architect on the physical work, and by a chartered accountant on the cost. Land cost is usually treated as 100% incurred at registration, which is why early withdrawals on a project with expensive land can be substantial even at low construction progress. Several states (Maharashtra among them) use prescribed certificate formats — Form 1, 2 and 3 under MahaRERA — and update them periodically.

Planning around it

Fast sales with slow construction leave cash locked in the account; slow sales with fast construction leave the account short of the cost it is meant to fund. The sales velocity calculator gives the collections side of that picture. Together they tell you whether the next quarter's construction is funded by buyers or by the lender.

This calculator is a planning aid and not a substitute for the certificates or for state-specific rules. Use it to size the next application before the auditors do.

Questions

Frequently asked

What is the RERA 70% rule?

Section 4(2)(l)(D) of the Real Estate (Regulation and Development) Act 2016 requires a promoter to deposit 70% of the amounts realised from allottees into a separate account with a scheduled bank, to be used only for the land and construction cost of that project. The remaining 30% is free for the promoter to use.

How much can be withdrawn from the RERA designated account?

Withdrawals are allowed in proportion to the percentage of completion of the project, and each withdrawal must be certified by an engineer, an architect and a chartered accountant confirming that it is in proportion to the work done. The calculator applies the completion percentage to the account balance and subtracts what has already been drawn.

Does the 70% apply to every project?

Yes, to every project that requires RERA registration: more than 500 square metres of land or more than eight units. Some states allow a lower percentage where the land cost exceeds the construction cost, so the promoter is not locking funds it cannot use; check your state rules.

Is GST collected from buyers part of 'amounts realised'?

No. GST is collected on behalf of the government and is not consideration for the unit, so it is excluded from the 70% computation. Most authorities also exclude stamp duty and registration charges collected for onward payment.

What happens if the account is used for another project?

Diverting designated account funds is one of the most serious offences under the Act. Penalties run up to 5% of the estimated project cost, and authorities can revoke the project's registration and take over the account.