15/11/2022
Some common Points that the Practicising CA should go through before certificaton or audit under RERA.
Applicability of RERA 2016-
Land being developed or to construct appartment to be given on lease or freehold
Land being developed or converted in plots to be sold to general public
Existing building modified or rennovated as appartment or flats to be given on lease or as freehold
if appartment or residential unit is given on rent then RERA will not be applicable
Check list areas
Check whether promoter has opened a separate bank account for each project
Check whether 70% of collection from allottee is transfered to separate bank account maintained for the real estate project
check whether funds received for the project has not been diversified to other projects
Declaration from the promoter that he will open separate bank account and he will deposit 70% of collection
received from the allottee and promoter shall further declare that funds withdrawn will be utilised for the purpose
Promoter to declare that he will withdrwan the fund in proportion to % of completion of project as certified by engineer,architect and practicing CA
Promoter will get his account audited within 6month from the end of F/Y by practicing CA
Documentaion required for promoter
Project report
Prospectus of the project
Application for registeration of project & Real estate agent
Allotment letter
Agreement of Sales
Agreement with vendor etc
Role of CA
Issueing the Certificate of completion of project
Audit of account of promoter as stated above
Registration of project and real estate agent with state authority under the RERA.
Quarterly Updating the details of project,unit, number,appartment etc to the authority
Working Papers
The chartered accountant should keep on his record the following:
A letter of engagement stating the nature of certificate required and the purpose for which it will be used;
The relevant particulars, duly certified by the promoter to be true, received from him regarding the land cost and
the cost of construction incurred during the period covered by the certificate as also the particulars to show
cumulative land cost and the cost of construction incurred up to the date of the certificate;
Working showing the manner of attribution of expenditure on interest to the project, that it is in accordance with the applicable AS, if any;
The certificates issued by the engineer and the architect;
A note on assumptions, if any made while issuing certificate with reasons;
A note giving reasons why any evidence is accepted or rejected or why any term or expression is given a particular meaning, etc.
Reconcilation statement the difference, if any, in the extent of work completed as certified by the engineer and the
