RERA stands for the Real Estate (Regulation and Development) Act, which was enacted by the Indian Parliament in 2016. RERA aims to regulate and promote transparency in the real estate sector in India. It seeks to protect the interests of homebuyers and ensure timely delivery of projects by real estate developers.
1. Establishment of Regulatory Authorities: Each Indian state and union territory is required to establish a Real Estate Regulatory Authority (RERA) to oversee the implementation of the act within its jurisdiction.
2. Mandatory Registration of Projects and Agents: Real estate developers are required to register their projects with the respective state RERA before advertising or selling any plots, apartments, or buildings. Real estate agents are also required to register themselves with RERA before facilitating any transactions.
3. Transparency and Disclosure: Developers are mandated to provide detailed information about their projects on the RERA website, including project plans, layout, approvals, schedule for completion, and status of construction. Any changes to the project plans must be approved by the majority of buyers.
4. Deposit of Funds in Escrow: Developers are required to deposit a certain percentage of the project funds into an escrow account to ensure that the funds are utilized for the specific project and not diverted elsewhere.
5. Timely Delivery: RERA aims to ensure timely completion and delivery of real estate projects by imposing penalties on developers for delays in completion or possession.
6. Quality of Construction: Developers are obligated to adhere to quality standards specified by RERA, failing which penalties can be imposed.
7. Redressal of Grievances: RERA provides for the establishment of Real Estate Appellate Tribunals to adjudicate disputes between buyers and developers. It also provides for the establishment of a fast-track dispute resolution mechanism.
RERA has significantly enhanced transparency and accountability in the Indian real estate sector, thereby boosting consumer confidence. It has also helped in reducing delays in project delivery and minimizing fraudulent practices.
Singh Suri & Company, Chartered accountants can provide various services related to the Real Estate (Regulation and Development) Act (RERA) to both real estate developers and homebuyers. Here are some key services they may offer:
1. RERA Compliance Advisory: We advise real estate developers on compliance requirements under RERA. This includes providing guidance on registration procedures, timelines, documentation, and disclosures required under the law.
2. RERA Registration Assistance: We assist real estate developers in completing the registration process with the respective state RERA authorities. This involves preparing and filing the necessary application forms, supporting documents, and fees to obtain RERA registration for ongoing and new projects.
3. Project Financial Management: We help real estate developers manage project finances in compliance with RERA regulations. This includes setting up separate project bank accounts, maintaining project-specific financial records, and ensuring proper utilization of funds as per RERA guidelines.
4. Financial Reporting and Disclosures: We prepare and submit financial statements, audit reports, and other disclosures required under RERA. This includes providing transparency to homebuyers and regulators regarding project finances, construction progress, and utilization of funds.
5. Escrow Account Management: We manage escrow accounts established under RERA to safeguard homebuyers’ funds and ensure their proper utilization for project development. This involves monitoring inflows and outflows of funds, reconciling account balances, and preparing periodic statements for disclosure to stakeholders.
6. Compliance Audit Services: We conduct compliance audits to assess real estate developers’ adherence to RERA regulations and guidelines. This includes reviewing project documentation, financial records, and construction progress reports to verify compliance with timelines, quality standards, and disclosures.
7. Dispute Resolution and Litigation Support: We provide expert advice and support in resolving disputes between real estate developers and homebuyers under RERA. This includes conducting financial analyses, preparing evidence, and providing expert testimony in legal proceedings or RERA authorities’ hearings.
8. Due Diligence Services: We perform due diligence reviews for homebuyers considering purchasing properties under RERA-regulated projects. This includes assessing the financial health of developers, reviewing project documentation, and evaluating compliance with RERA regulations to mitigate risks associated with property investments.
9. Project Completion and Handover: We assist real estate developers in completing RERA-compliant project development and handover processes. This includes obtaining necessary completion certificates, preparing final project accounts, and facilitating the handover of properties to homebuyers in accordance with RERA requirements.
10. Training and Education: We provide training programs and workshops to educate real estate developers, homebuyers, and other stakeholders on RERA regulations, compliance requirements, and best practices. This helps enhance awareness and understanding of RERA provisions and promotes transparency and accountability in the real estate sector.
These are some of the services that Singh Suri & Company, Chartered Accountants can offer in relation to RERA to support compliance, transparency, and accountability in the real estate industry. The specific services required may vary based on the needs and circumstances of real estate developers, homebuyers, and other stakeholders involved in RERA-regulated transactions.
Singh Suri & Company, Chartered Accountants was established in 2009. The Firm has emerged as an Accounting, Tax, Audit & Business Management Consultancy firm providing wide range of services to clients in India and Abroad.
Head Office : E-1566, Sector-1, Tigri, Dr.Ambedkar Nagar, New Delhi-110080
Branch Office : Unit No. 2417, 4th Floor, Tower 2, Express Trade Towers 2, B-36, Sector-132, Noida - 201301 (U.P)
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