During a recent review meeting, HRera observed that numerous promoters had failed to file these mandatory reports despite repeated reminders. In response, the authority is now issuing show-cause notices to defaulters, demanding adherence within the specified timeframe. It has warned that non-compliance will result in significant financial penalties.

The regulator underscored that failure to file annual reports constitutes a serious breach of the Real Estate (Regulation and Development) Act, 2016 (Rera Act). Promoters who do not comply within 30 days of receiving the notice will face an initial penalty of Rs 5 lakh. Additionally, an incremental penalty of ?10,000 per day will be imposed for continued non-compliance beyond 60 days.

Under Section 4(2)(l)(d) of the Rera Act, promoters are required to have their project accounts audited by a certified chartered accountant within six months of the financial year’s end. The audit must confirm that funds collected for a project are utilised solely for its intended purpose and that withdrawals are proportionate to the project's completion status.

HRera further cautioned that providing false information or violating Section 4 provisions could lead to penalties of up to 5% of the project's estimated cost under Section 60 of the Act. This emphasises the necessity of upholding financial integrity in project execution.

The regulator reiterated that these measures are designed to foster greater transparency and accountability within the sector. Promoters have been urged to comply promptly with these regulations to avoid severe financial and legal consequences.