The Karnataka Real Estate Regulatory Authority (K-RERA) on January 09, 2026, notified penalty for Non-Submission and Delay in Submission of Annual Audit Report for the Financial Year 2024-25.
The Government of India enacted the Real Estate (Regulation and Development) Act, 2016, and the Government of Karnataka notified the Karnataka RERA Rules, 2017, leading to the establishment of the Karnataka Real Estate Regulatory Authority (K-RERA). Under Section 4(2)(l)(D) of the Act, promoters are required to get their project accounts audited annually by a Chartered Accountant and submit a certified Annual Audit Report (Form-7) within six months of the end of each financial year.
K-RERA notified the format of the Annual Audit Report (Form-7) and enabled online filing through its web portal from October 13, 2022. Despite multiple extensions through circulars dated September 12, 2025, November 15, 2025, and December 12, 2025, many promoters failed to submit the Annual Audit Report for FY 2024-25 by the final deadline of December 31, 2025.
As per Sections 38(1) and 60 of the RERA Act, K-RERA has decided to levy penalties for non-submission or delayed submission of the Annual Audit Report for FY 2024-25. The penalty amount varies based on the total estimated cost of the project, ranging from ₹20,000 to ₹1,00,000 per financial year of default.
However, K-RERA has granted a final opportunity to promoters to submit the Annual Audit Report for FY 2024-25 without penalty up to January 20, 2026. Failure to submit the report and pay the applicable penalty between January 21, 2026 and March 31, 2026 will result in recovery proceedings starting from April 01, 2026, as per the provisions of the Act.
The circular comes into effect from January 09, 2026.
[Circular No: RERA/Accounts/CR/244050/2024-25]
