CA Nirmal Ghorawat's Blog

Role of Chartered Accountants

1.    Third proviso to Section 4(2) of the RERDA mandates that the promoter

(a)   shall get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and

(b)   shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during the audit that

(i)    the amounts collected for a particular project have been utilized for the project and

(ii)    the withdrawal has been in compliance with the proportion to the percentage of completion of the project.

2.    Second proviso to Section 4(2) of the RERDA mandates that the amounts from the separate bank account (in which 70% of the amounts realised for the real estate project from the allottees, from time to time to cover the cost of construction and the land cost and shall be used only for that purpose) shall be withdrawn by the promoter after it is certified by

(i) an engineer, and

(ii) an architect and

(iii) a chartered accountant in practice

that the withdrawal is in proportion to the percentage of completion of the project.

3.         Chartered Accountant is one of the professions recognised by the RERDA to provide legal representation to the applicant or the appellant to present their or its case before the Appellate Tribunal or the Regulatory Authority or the adjudicating officer, as the case may be.