The Karnataka Real Estate Regulatory Authority (KRERA) on February 07, 2026, issued a circular regarding penalty for the delay/Non-Submission of the Annual Audit Report (Form-7).
The following has been stated:
Under the Real Estate (Regulation and Development) Act, 2016 and the Karnataka Real Estate (Regulation and Development) Rules, 2017, the Karnataka Real Estate Regulatory Authority (K-RERA) requires promoters to submit an Annual Audit Report (Form-7) for their registered projects. As per Section 4(2)(l)(D) of the Act, promoters must get their project accounts audited by a practicing Chartered Accountant within six months after the end of each financial year and submit a certified statement confirming that the funds collected for the project were used only for that project and withdrawals were made according to the stage of completion.
K-RERA had enabled online submission of the Annual Audit Report on its portal and published the format of Form-7 on October 13, 2022. Although the deadline for submitting the report for FY 2023-24 was extended until December 31, 2024, several promoters failed to comply despite multiple notices. Therefore, under Section 60 of the Act, the Authority has decided to impose penalties for delay or non-submission of the Annual Audit Report based on the project cost, ranging from ₹20,000 to ₹1,00,000 per financial year. However, promoters are given a final opportunity to submit the report without penalty until March 31, 2026. If they fail to comply, the Authority will initiate penalty recovery proceedings from April 01, 2026. The circular came into effect on February 07, 2026.
[Notification No: RERA/Accounts/CR/129/2023-24]
