The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has identified 76 projects whose promoters have not yet uploaded their annual audit reports for the financial year 2024-25 on the authority's web portal and have issued show-cause notices to all defaulting promoters.
UP RERA has directed all defaulting promoters to upload the pending audit reports within 15 days along with the prescribed late fee for the relevant financial year, failing which they could face a penalty of up to five per cent of the estimated project cost.
According to an official statement, it is mandatory for real estate promoters to get project accounts audited after the end of every financial year and upload the annual audit report on the UP RERA website within six months of the close of the financial year.
The reports enable the authority to review and assess projects while ensuring that homebuyers and the public have access to accurate information, the statement said.
Promoters who fail to file the annual audit report will have to pay a late fee of Rs 25,000 for the relevant financial year. In addition, violations of Section 4 of the Real Estate (Regulation and Development) Act and related rules and regulations could attract a penalty of up to five per cent of the project's estimated cost.
Under UP RERA rules, project accounts must be audited by an independent external auditor appointed by the promoter. The auditor cannot be associated with the promoter's company, group or any affiliated entity, ensuring transparency, independent scrutiny and accurate financial reporting.
The authority described the failure to submit annual audit reports as a serious lapse, saying it goes against the provisions of the RERA Act aimed at ensuring transparency and accountability in the functioning of promoters.
The authority said filing annual audit reports is not merely a procedural requirement but an important mechanism to ensure transparency, accountability and protection of the interests of allottees.
Timely submission of reports also helps make verified project information available to the public through the authority's website, enabling homebuyers to monitor project progress and promoters' compliance.
ALSO READ: Real Estate PE Bets Decline 23% As Investors Turn Cautious Amid Global Uncertainty
UP RERA Chairman Sanjay Bhoosreddy said, "Submitting the annual audit report on time is a fundamental responsibility of every promoter under RERA. Independent audits and accurate reporting enhance transparency and strengthen the confidence of homebuyers." "UP RERA will continue to ensure strict compliance with these provisions so that the interests of allottees remain protected and the state's real estate sector becomes more accountable and trustworthy," he added.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
