UP RERA issues notices to 76 real estate projects over missing FY25 audit reports

New Delhi: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued show-cause notices to promoters of 76 real estate projects for failing to upload their annual audit reports for the financial year 2024-25 on the authority’s web portal.

According to UP RERA, the defaulting promoters have been directed to submit the pending audit reports within 15 days along with the prescribed late fee for the relevant financial year. The authority warned that continued non-compliance could attract penalties of up to five per cent of the estimated cost of the respective projects.

In an official statement, the authority said that real estate promoters are required to get their 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 annual audit reports play a crucial role in enabling the regulator to review and assess the financial status of projects while ensuring that homebuyers and the general public have access to accurate and transparent information regarding ongoing developments.

UP RERA said promoters who fail to submit the annual audit report are liable to pay a late fee of Rs 25,000 for the concerned financial year. The authority added that violations of provisions under Section 4 of the Real Estate (Regulation and Development) Act and related rules may result in penalties of up to five per cent of the estimated project cost.

Under the existing regulations, 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 entities or affiliated organisations, a requirement aimed at ensuring independent scrutiny, transparency and accurate financial reporting.

The authority described the non-submission of annual audit reports as a serious lapse that runs contrary to the objectives of the RERA Act, which seeks to promote transparency and accountability in the real estate sector.

UP RERA further said that filing annual audit reports is not merely a procedural requirement but an important mechanism to safeguard the interests of homebuyers and ensure accountability in the functioning of promoters.

IANS