UP-RERA Asks Builders Project Accounts Audit Within 6 Months Of FY End

The promoter has to get the project accounts audited and upload the audited balance sheet on the website of the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) within six months of the financial year end.

In case of serious discrepancies or complains the authority will get the accounts of the project audited by an auditor on the panel of the authority. The cost of such audit shall be borne by the promoter.

The authority also issued directions in relation to change in project account. The authority may permit the promoter to change project account under exceptional circumstances only if it is satisfied with the grounds for change given by the promoter through an online application on the portal of the authority.

Sanjay Bhoosreddy, chairman, UP-RERA said "the bank accounts of the project are most sacrosanct to the project and the Authority has laid down detailed guidelines for these accounts with a view to protect the interests of the consumers and ensure and accountability of the promoter. The authority is however conscious of the fact that sometimes change in the accounts may be necessitated and there could be conditions when even forensic audit of the accounts may be necessary and that the Authority has laid down procedure for all such activities."

The changes may be considered if the promoter had not declared the bank account of the project at the time of the registration of the project with the authority, if the bank account is common to more than one project of the promoter, if the bank account is a general collection account of the promoter and not a bank account of the project as clarified in these directions, if the bank account is with a bank outside the district where the project is located and if the bank has been completely taken over by a new banking institution or a fresh project finance is availed of by the promoter for the entire project.