The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has sent show-cause notices to promoters of 76 real estate projects for not submitting their annual audit reports for the financial year 2024-25 on the authority’s website. Promoters have been given 15 days to provide the pending audit reports along with the required late fee. Failure to comply could lead to penalties of up to five percent of the project’s estimated cost.
Real estate promoters are mandated by UP RERA to audit their project accounts at the end of each financial year and upload the annual audit report on the authority’s website within six months of the financial year’s end. These reports are essential for the regulator to evaluate project finances and ensure transparency for homebuyers and the public.
Promoters who fail to submit the annual audit report may face a late fee of Rs 25,000 for the respective financial year. Violations of Real Estate (Regulation and Development) Act provisions could result in penalties of up to five percent of the project cost. The regulations require an independent external auditor, not associated with the promoter’s entities, to audit project accounts to ensure transparency and accurate financial reporting.
UP RERA emphasized that the absence of annual audit reports contradicts the RERA Act’s transparency and accountability goals in the real estate sector. Filing these reports is not just a procedural obligation but a crucial step to protect homebuyers’ interests and ensure promoter accountability.
