UP-RERA strict on promoters who do not submit audit report, heavy fine may be imposed

Uttar Pradesh Real Estate Regulatory Authority has taken a serious stand against some real estate promoters who have not submitted the annual audit report for the financial year 2024-25. UP-RERA has identified 76 such projects whose promoters have not yet uploaded their annual audit reports on the UP-RERA web portal.

real estate promoters It is mandatory for them 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 6 months of the end of the financial year. With this, UP-RERA can review and evaluate the projects and the correct information can also be available to the general public and the allottees of the related projects.

Late fee will have to be paid Rs 25,000

If the annual audit report is not filed, a late fee of Rs 25,000 will have to be paid for the concerned year. At the same time, for violation of Section 4 of the RERA Act and related rules and regulations, a heavy fine of up to 5% of the estimated cost of the project can be imposed.

According to UP-RERA rules, it is necessary to get the financial audit of the project accounts done by an external auditor appointed by the promoter. The auditor should be an independent entity and should not be the auditor of the promoter’s company, group or any entity associated with it. Its objective is to ensure transparency, independent scrutiny and accurate reporting of financial information of projects.

List of promoters not filing annual audit report of most projects

Serial No. promoter project

1. Svekreti Residency LLP: Vedansha Greens-3, Vedansha Greens-2, Vedansha Greens-1
2. IT Infrastructure Park Pvt Ltd: The Flagship Phase 4, The Flagship Phase 3
3. Aradhyam Builders: Aradhyam Spa City Phase 1, Aradhyam Plot C
4. Gorakhpur Industrial Development Authority: Sector-11 Commercial Scheme, Sector-11 Residential Scheme
5. M/S Maharaja Realtors: Maharaja Mansarovar-1, Maharaja Mansarovar-2
6. Gorakhpur Development Authority: Raptinagar Extension Township and Sports City, Greenwood Residential Scheme
7. Mathura-Vrindavan Development Authority: Hanumat Vihar Residential Scheme, Govind Vihar Residential Scheme

highest cost projects

1. VVIP Addresses Greater Noida (West) Vibhor Vaibhav Infrahome Pvt Ltd, Gautam Buddha Nagar
2. CRC MAESTA CRC Homes Pvt Ltd, Gautam Buddha Nagar
3. Central Icon Business Bay Fin Infra Private Limited, Gautam Buddha Nagar
4. Signature Park RS Resource Management Consulting Pvt Ltd, Gautam Buddha Nagar
5. ACE ESTATE Logix BuildEstate Pvt Ltd, Gautam Buddha Nagar
6. Metro Suits Belavi Metro Suits Homes LLP, Ghaziabad
7. Avenue IV Aura Buildcom LLP, Gautam Buddha Nagar
8. Migson Lucknow Central Wilmot Infratech Pvt Ltd, Lucknow
9. The Flagship Phase 4 IT Infrastructure Park Pvt Ltd, Gautam Buddha Nagar
10. Oasis Grandstand Phase-2 Oasis Realtech Pvt Ltd, Gautam Buddha Nagar

Show cause notice issued to defaulting promoters

Not filing the annual audit report of the projects on the website of UP-RERA is a serious negligence. This is contrary to the provisions of the RERA Act, which aim to ensure transparency and accountability in the functioning of promoters.

Taking this matter seriously, UP-RERA has directed all concerned promoters to compulsorily upload the annual audit report along with prescribed late fees within 15 days. If this is not done, the authority can impose a fine up to 5% of the estimated cost of the project. In this regard, show cause notices have been issued to all the defaulting promoters.

Importance of filing reports on time

UP-RERA has clarified that filing of Annual Audit Report is not just a formal process, but it is an important means of transparency, accountability and protection of interests of allottees.

Timely filing of reports helps the Authority to make real and certified information about projects available to the general public on its website. This provides accurate information to the allottees about the progress of the project and the responsibilities of the promoter.

UP-RERA Chairman Sanjay Bhoosreddy said that timely submission of annual audit report is the basic responsibility of every promoter under RERA. Independent audits and accurate reporting increase transparency and strengthen the confidence of home buyers. UP-RERA will continue to ensure strict adherence to these provisions, so that the interests of allottees are protected and the real estate sector of the state progresses in a more accountable and trustworthy manner.

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