Builders must have project accounting audited by UP-RERA within six months of the conclusion of the fiscal year.

NEW DELHI: Within six months of the conclusion of the fiscal year, the promoter must have the project accounts audited and upload the audited balance sheet to the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) website.

The project’s financial records will be examined by an authorized panel auditor if there are significant inconsistencies or complaints. The promoter is responsible for covering the cost of this audit.

Regarding the modification of the project account, the authority also issued directives. If the authority is satisfied with the justification provided by the promoter via an online application on the authority portal, it will only allow the promoter to modify the project account under extraordinary circumstances.

The bank accounts of the project are extremely important to it, and the Authority has established strict criteria for these accounts to safeguard consumer interests and guarantee the promoter’s accountability,” stated Sanjay Bhoosreddy, chairman of UP-RERA.

The authority has established procedures for all such actions, but it is aware that occasionally changes to the accounts may be required and that there may even be circumstances when a forensic audit of the accounts is required.”

Changes may be taken into consideration if the project’s bank account was not disclosed by the promoter when the project was registered with the authority if the bank account is shared by the promoter for multiple projects, if the bank account is a general collection account rather than a project bank as specified in these instructions, if the bank account is with a bank outside the project’s district, and if the bank has been entirely taken over by a new banking institution or if the promoter has obtained new project financing for the duration of the project.

After the project is completed, the promoter may apply online for permission to close the project account.

This request must be accompanied by a copy of the completion certificate from the appropriate authority, the architect’s certificate in Form RA-5, the final REG Form-3 duly certified by the chartered accountant, and an affidavit from the promoter attesting to having paid all outgoings by section 11(4)(g) of RERA.

After reviewing the application, the authority may agree to allow the promoter to close the project’s separate account and withdraw the remaining funds.

Nonetheless, at the time of the application for the closure of the project’s separate account, the promoter will not be released from any obligations that it has not discharged or informed to the relevant authorities.