The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has taken serious note of non-compliance by some of the real estate promoters in filing of Annual Audit Reports for the financial year 2024-25. UPRERA has identified 76 projects where the promoters have not uploaded the annual audit reports on its web portal.

It is mandatory for the promoters to get their project accounts audited at the end of the financial year and to upload the annual audit report on the website of the UP RERA within six months from the end of the financial year for review and appraisal by U.P. RERA and for information of the general public, including the allottees of the related projects. Whereas the non-filing of the annual audit reports attract a late fees of Rs.25,000 for the corresponding year, the violation of Section-4 and corresponding provisions of the rules and regulations attracts heavy penalty upto 5 percent of the estimated cost of the project. 

As per UP RERA regulations, the financial audit of the project accounts is required to be conducted through an external auditor appointed by the promoter. The auditor should be independent entity and should not be an auditor belonging to the promoter’s group or associated entities. The objective is to ensure transparency, independent verification and accuracy of financial disclosures submitted before the Authority.

The list of the defaulting promoters with largest number of projects

Biggest projects cost wise:

1. VVIP ADDRESSES GREATER NOIDA (WEST) ofVibhor Vaibhav infrahome Pvt. Ltd. Gautam Buddha Nagar

2. CRC MAESTA of CRC Homes Private Limited Gautam Buddha Nagar

3. CENTRAL IKON of BUSINESS BAY FIN INFRA PRIVATE LIMITED, Gautam Buddha Nagar

4. SIGNATURE PARK of  R.S. RESOURCE MANAGEMENT CONSULTING PRIVATE LIMITED, Gautam Buddha Nagar

 5. ACE ESTATE of LOGIX BUILDESTATE PVT LTD, Gautam Buddha Nagar

6. METRO SUITES BELLAVIE of METRO SUITES HOMES LLP, Ghaziabad

7. AVENUE IV of AURA BUILDCOM LLP, Gautam Buddha Nagar

8. MIGSUN LUCKNOW CENTRAL of WILMOT INFRATECH PRIVATE LIMITED, Lucknow

9. THE FLAGSHIP PHASE 4 of IT INFRASTRUCTURE PARK PRIVATE LIMITED, Gautam Buddha Nagar

10. OASIS GRANDSTAND PHASE-2 of OASIS REALTECH PVT. LTD, Gautam Buddha Nagar

Show Cause Notice to defaulting promoters

Non-filing of annual audit reports of the projects on the website of the UP RERA is serious offense and runs contrary to the provisions of the RERA Act intended to ensure and enhance transparency and accountability by the promoters. Therefore, RERA has taken very strict view of these violations by the concerned promoters. It has issued strict directions to all such promoters to necessarily upload the annual audit reports within 15 days with payment of prescribed late fees failing which causes penalty upto 5 percent of the cost of the project may be imposed by the Authority. Show cause notices to this effect have been sent to all such promoters.

Importance of timely reporting

UPRERA has reiterated that filing of annual audit reports is not merely a procedural requirement but an important mechanism for ensuring transparency, accountability and protection of the interests of allottees. Timely reporting enables the Authority to ensure timely availability of authentic project information to the general public on its website and creates greater awareness among allottees regarding project progress and promoter responsibilities.

Statement by the Chairman

Chairman, UPRERA Sri Sanjay Bhoosreddy said, “Timely submission of annual audit reports is a fundamental responsibility of every promoter under RERA. Independent audit and accurate reporting strengthen transparency and build confidence among homebuyers. UPRERA will continue to ensure strict compliance of these provisions so that the interests of allottees remain protected and the real estate sector of the state develops with greater accountability.”