Annual Audit under RERA
Why It’s Required?
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), every registered project is required to undergo an Annual Audit of Accounts to ensure that the funds collected from allottees are utilized strictly for the purpose of the project and not diverted elsewhere. Promoters must get their accounts audited by a chartered accountant (CA) within six months after the end of every financial year and submit the report to the respective State RERA Authority.
The Annual Audit verifies compliance with Sections 4(2)(l)(D) and 4(2)(l)(C) of the RERA Act, ensuring that at least 70% of the project funds collected are deposited in a designated bank account and withdrawn only in proportion to project completion. Non-compliance may attract strict penalties and affect the promoter’s credibility. By conducting timely audits, promoters demonstrate financial transparency, accountability, and reliability, which builds buyer trust and strengthens the project’s market position.
What We Do?
Bluvaron Solutions LLP expert team coordinates with your financial team and CAs to prepare and submit annual audit reports accurately and on time.
Annual Audit Compliance Timeline under RERA
Key Note
The annual audit must be conducted by a chartered accountant and uploaded to the respective State RERA portal within six months of the financial year-end.