File annual reports in 30 days to avoid penalties, RERA warns promoters
In response to repeated non-compliance with the mandatory submission of annual reports for under-construction real estate projects, the Haryana Real Estate Regulatory Authority (HRERA), Gurugram, has issued a warning to city promoters, requiring them to file the reports within 30 days to avoid strict penalties.
During a review meeting last week, the authority expressed concern over the failure of many real estate promoters to submit annual project reports. Show-cause notices have now been issued to these promoters, instructing them to comply within 30 days or face penalties.
In its order, the authority stated that failure to submit annual reports is a serious violation of the RERA Act, 2016. Promoters who do not comply within 30 days may face a penalty of Rs 5 lakh. Furthermore, an additional fine of Rs 10,000 per day will be imposed on those failing to file the report within 60 days of receiving the notice.
As per Section 4(2)(l)(d) of the RERA Act, 2016, real estate promoters are required to have their accounts audited by a practising chartered accountant within six months of the end of each financial year. The audit must verify that funds collected for a specific project have been used solely for that project and withdrawals comply with the project’s completion percentage.
Under Section 60 of the Act, promoters who provide false information or violate Section 4 may face penalties of up to 5 per cent of the estimated cost of the project, as determined by the authority.
