The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has initiated strict action against real estate promoters who failed to submit mandatory annual audit reports for the financial year 2024–25 within the prescribed deadline. The authority has identified 76 real estate projects across the state whose promoters have not uploaded their annual audit reports on the UP RERA web portal despite the expiry of the statutory time limit.
UP RERA has issued show-cause notices to all defaulting promoters, granting them a final opportunity to upload the pending audit reports within 15 days along with the applicable late fee. The authority has warned that failure to comply within the stipulated period could result in penalties of up to five percent of the estimated project cost, as provided under the Real Estate (Regulation and Development) Act.
According to UP RERA, every promoter is legally required to have the project’s accounts audited by an independent external auditor after the close of each financial year and upload the annual audit report to the authority’s portal within six months. The requirement is intended to ensure financial transparency, proper utilisation of project funds, and compliance with regulatory norms.
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The authority has clarified that the audit must be conducted by an independent external auditor who is not associated with the promoter’s company, group entities, or affiliated organisations. This provision has been introduced to eliminate conflicts of interest and ensure that financial statements are reviewed impartially and accurately.
Apart from the statutory penalties, promoters who fail to submit the audit report on time are also liable to pay a late fee of ₹25,000. UP RERA has reiterated that timely submission of audit reports is a mandatory legal obligation and that non-compliance will invite strict regulatory action.
Several high-value projects have been identified among those with pending audit reports. These include VVIP Addresses Greater Noida West, CRC Maesta, Central Icon, Signature Park, Ace Estate, Avenue-4, The Flagship Phase-4, and Oasis Grandstand Phase-2 in Gautam Buddh Nagar; Metro Suites Bellavie in Ghaziabad; Mingson Lucknow Central in Lucknow; Vedansha Greens Phases 1, 2 and 3 developed by Swekriti Residency LLP; The Flagship Phases 3 and 4 by IT Infrastructure Park Private Limited; Aradhyam Spa City Phase-1 and Aradhyam Plot-C by Aradhyam Builders; Maharaja Mansarovar Phases 1 and 2 by Maharaja Realtors; as well as several housing schemes undertaken by the Gorakhpur Industrial Development Authority (GIDA), Gorakhpur Development Authority (GDA), and the Mathura-Vrindavan Development Authority.
UP RERA Chairman Sanjay Bhoosreddy said that submitting annual audit reports within the prescribed timeline is a fundamental statutory responsibility of every promoter. He emphasised that the authority will continue to enforce the provisions of the RERA Act strictly to ensure transparency, financial discipline, and greater accountability in the real estate sector.
