• Dr. Shree Bhagwat
• Meghwant Singh Thakur

Liquidity refers to the ability of real estate developers to meet their short-term obligations without raising fresh capital. Before the introduction of RERA, developers used to divert customer’s funds into new projects without taking their consent, thereby reducing their need for working capital and providing ample liquidity. RERA mandates that 70% of revenue derived from sale of real estate units to be deposited in an escrow account with commercial banks. These funds will only be allowed to be withdrawn after a certificate showing project progress from a chartered accountant and registered architect. With this provision in force, the access to free working capital from customers has been severely restricted for developers, thus increasing their working capital requirements forcing them to raise funds through short term instruments.

RERA

"Effect of RERA on Liquidity of Real Estate Developers", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 4, page no.1180-1188, April-2019, Available :http://www.jetir.org/papers/JETIR1904U47.pdf

"Effect of RERA on Liquidity of Real Estate Developers", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 4, page no. pp1180-1188, April-2019, Available at : http://www.jetir.org/papers/JETIR1904U47.pdf