BHUBANESWAR: Promoters are not required to furnish annual audit certification for their real estate projects as long as they develop them exclusively from their own resources, the Odisha Real Estate Regulatory Authority (ORERA) has said in a recent order.
As per norms of Real Estate (Regulation & Development) Act 2016, annual audit certificate from project promoters and developers is required for maintaining transparency of accounts in relation to amount realised from allottees (buyers). However, the provision is not applicable for a real estate project developed by a promoter exclusively from his/her own resources, it clarified.
The regulatory authority stated once the booking amount is received from the customers, the promoter will have to file the audit certificate mandatorily thereafter. Under section 4 of RERA Act, 70 per cent of the amount realised for a real estate project from the allottees/buyers, from time-to-time has to be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and land cost. The amount has to be used only for that purpose.
The amount from the separate account can be withdrawn by the promoter after an engineer, architect and chartered accountant in practice certify that the withdrawal is in proportion to the percentage of completion of the project.