India, Aug. 20 -- In a measure aimed at safeguarding homebuyers and reducing their financial exposure during construction, the Maharashtra government plans to restrict developers from collecting the entire property consideration before the project receives final completion registration. Under the proposal, developers would be allowed to collect up to 80% of the total consideration when executing the Agreement for Sale (AFS), with the remaining 20% payable upon project completion and final registration.

Maharashtra Revenue Minister Chandrashekhar Bawankule recently said the state was considering a legal change allowing developers to collect only 75% to 80% of the property's total value at the agreement-to-sell stage, with the remaining 20...