The Real Estate Regulatory Authority, (RERA, Karnataka) on October 20, 2023, issued a notification regarding the Submission of the Annual Audit Report as per Section 4(2)(l)(D) of the RERA Act 2016.
The following has been stated-
The 3rd proviso to section 4(2) (l) (D) of the RERA Act 2016 requires promoters to have their accounts audited by a practicing chartered accountant within six months after the conclusion of each financial year. This audit must result in a statement of accounts that are duly certified and signed by the chartered accountant. During the audit, it is essential to verify that the funds collected for a specific project have been used for that project and that withdrawals are in line with the project's completion percentage.
In line with the powers granted under sections 25 and 37 of the Real Estate (Regulation and Development) Act, 2016, the Karnataka Real Estate Regulatory Authority has recently introduced a new format for Form-7, the Annual Audit Report on the Statement of Accounts. Promoters are now obliged to obtain the New Form 7 for the financial year 2021-22 and subsequent years for each project from a practicing chartered accountant.
Moreover, the New Form 7 must be submitted through a dedicated online module. Promoters should visit the K-RERA web portal, access the Annual Audit login under Registration, and provide the necessary information, details, documents, and the New Form-7.
In addition to this, promoters are required to submit the information related to the annual audited books of accounts, including the Profit and Loss Account, Balance Sheet with schedules, cash flow statements, Income Tax Returns, and Auditor's report, along with the New Form-7 for the financial year ending on March 31, 2023, no later than November 30, 2023. This process is in accordance with the Real Estate (Regulation and Development) Act, 2016, and Real Estate (Regulation and Development) Rules 2017.
[Notification No. RERA/Accounts/CR/129/2021-22]
