The Real Estate (Regulation and Development) Act (RERA) has been a game-changer in bringing transparency and accountability to the real estate sector. However, with these regulations come mandatory compliances that developers and promoters must adhere to. One such crucial compliance is the timely filing of Quarterly Progress Reports (QPRs) under RERA.
Failing to meet these requirements, particularly under MahaRERA, can result in hefty penalties, including a fine of up to ₹50,000 for missing QPR deadlines. Here's everything you need to know to stay compliant and avoid penalties.
Quarterly Compliances Under RERA - What Are They?
MahaRERA mandates quarterly updates on project progress to ensure transparency and protect homebuyers. Developers must file QPRs within seven days of the financial quarter's end.
Key Due Dates for Filing QPRs
| QUARTER | DUE DATES |
|---|---|
| Q1 (April, May, June) | 7th of July |
| Q2 (July, Aug, Sept) | 7th of October |
| Q3 (Oct, Nov, Dec) | 7th of January |
| Q4 (Jan, Feb, March) | 7th of April |
Essential Components of a Quarterly Progress Report (QPR)
- Project Approvals: Updates on changes in building plan approvals.
- Project Status: Physical and financial progress (with Forms 1, 2, 3).
- Financial Disclosures: Submission of Form 5 within six month from the end of financial year.
- Sales Updates: Status of booking for apartments, plots, and garages.
- Professional Changes: Updates on changes in architects, engineers, or chartered accountants.
- Encumbrances: Any changes in encumbrances or project details since registration.
Consequences of Non-Compliance
- Immediate Notices: A web-generated notice will be issued upon missing the deadline.
- Hearing and Penalties: If no response is received within 10 days, the Chief Planning Officer may impose fines or other penalties after a hearing.
How to Stay Compliant and Avoid Penalties
- Plan Ahead: Maintain a compliance calendar to ensure timely submissions.
- Engage Professionals: Consult a RERA lawyer for expert guidance.
- Use Technology: Implement software or tools to track and prepare updates on project progress.
- Regular Audits: Conduct internal reviews to ensure all financial and operational records are up-to-date.
Additional Compliance Areas for Developers and Promoters
Beyond QPR filing, developers must also comply with other legal and financial requirements, such as:
- Tax Audit and Income Tax Filing: Ensure accurate financial records to meet tax obligations.
- IND AS Reporting: Adhere to Indian Accounting Standards to maintain transparency in financial reporting.
Why Compliance Matters
Quarterly compliances under RERA not only ensure adherence to regulatory requirements but also:
- Build trust with homebuyers and investors.
- Enhance transparency in project management.
- Reduce the risk of penalties and legal disputes.
CAclubindia
