UP RERA mandates project audits and online reporting for developers

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has mandated developers to conduct an audit of project accounts and publish the audited balance sheet on the authority's website within six months of the fiscal year's conclusion. In cases of significant discrepancies or grievances, the authority reserves the right to appoint an auditor from its panel to scrutinise the project accounts. Sanjay Bhoosreddy, Chairman of UP RERA, emphasised the authority's awareness that modifications to accounts may be necessary at times, and in certain situations, a forensic audit may be essential. The authority has established procedures for such activities. Under extraordinary circumstances, the authority may allow promoters to alter project accounts, provided they submit a satisfactory online application through the authority's portal. Such changes may be considered if the developer did not disclose the project's bank account during registration, if the declared bank account on the authority's website is shared among multiple projects of the promoter, or if it is a general collection account rather than a specific project account, as clarified in these directives. Additionally, changes may be permitted if the declared bank account is located outside the district where the project is situated. For closing the project account, promoters must submit an online application after project completion, accompanied by a completion certificate, an architect's certificate, and an affidavit confirming payment of all expenses as per section 11 (4) (g) of RERA. The authority may grant permission to close the project's separate account and withdraw the remaining balance after scrutinising the application and ensuring satisfaction.