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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued show-cause notices to promoters of 76 registered real estate projects for failing to upload mandatory annual audit reports for FY2024-25 within the prescribed timeline. The authority has directed the defaulting promoters to submit the pending reports within 15 days along with a late fee of INR 25,000, warning that continued non-compliance could attract penalties of up to 5% of the estimated project cost under the Real Estate (Regulation and Development) Act. UP RERA said annual audit reports are a key mechanism for ensuring financial transparency, regulatory oversight and public disclosure, enabling homebuyers to monitor project compliance and safeguarding the interests of allottees.
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has identified 76 registered real estate projects whose promoters have failed to upload mandatory annual audit reports for the financial year 2024-25 on the authority's online portal. During the past week, the regulator issued show-cause notices to all defaulting promoters, directing them to comply within 15 days or face regulatory action under the Real Estate (Regulation and Development) Act, 2016.
According to UP RERA, promoters have been instructed to upload the pending audit reports along with the prescribed late fee of INR 25,000 for the relevant financial year. The authority warned that failure to comply within the stipulated period could result in penalties of up to 5% of the estimated cost of the respective project for violations of Section 4 of the RERA Act and related rules and regulations.
The regulator stated that every promoter is legally required to have the project accounts audited after the close of each financial year and upload the annual audit report on the UP RERA portal within six months of the end of the financial year. These reports enable the authority to monitor financial compliance, review project execution and ensure that verified project-related information remains accessible to homebuyers and the general public.
UP RERA emphasised that project accounts must be audited by an independent external auditor appointed by the promoter. The auditor cannot have any association with the promoter's company, group entities or affiliated organisations, a requirement intended to ensure impartial financial scrutiny, transparency and accurate reporting of project accounts.
The authority described the failure to file annual audit reports as a serious breach of the transparency and accountability provisions embedded in the RERA framework. It stated that the submission of audited financial statements is not merely a procedural obligation but an essential compliance requirement that enables regulators to assess whether project funds are being utilised appropriately and whether statutory obligations are being met.
Timely filing of audit reports also strengthens public disclosure by making verified financial information available through the UP RERA website. This allows prospective homebuyers, existing allottees and other stakeholders to track project progress, review regulatory compliance and make informed decisions based on authenticated project information.
Commenting on the enforcement action, UP RERA Chairman Sanjay Bhoosreddy said submitting annual audit reports within the prescribed timeframe is a fundamental statutory responsibility of every promoter registered under the Act. He stated that independent audits and accurate financial disclosures enhance transparency and reinforce homebuyer confidence in the real estate sector. Bhoosreddy added that the authority would continue to enforce compliance with RERA provisions to protect the interests of allottees while promoting greater accountability and credibility across Uttar Pradesh's real estate market.
Source - PTI
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