Real Estate (Regulation and Development) Act, 2016 seeks to streamline and regulate the real estate project working by incorporating various steps to safeguard the public by prescribing sufficient procedures and penal provisions. As the name suggests, the purpose of the act is to have regulatory authority. If we also look at every theme of Modi Government, the Government always depends on Professionals. Lost of faith and trust has been put on professionals.
Therefore, Government requires or we can say depends on Professionals like Chartered Accountants (CA), Architects and Engineers. Hence, CAs have been given an important role in the Act towards safeguarding the misapplication of the deposits by the promoters.
If we look at every section and chapter of RERA interesting things can be noted with regards to CA. We can find that CA is involved in every section and chapter of RERA. Without CA, certificate a promoter/builder cannot move ached.
Registration of Project Before advertising, booking, inviting people to buy any plot, apartment or building, etc. in any real estate project registration of the project with the Regulatory Authority is must. Therefore, Certificate of CA, Architect and Engineer is required. Without the certificate, the project cannot be registered.
Money Received from Customers
In a real estate project, it should deposit 70% of the money received from the customers in a separate account. As a result, if the builder needs to withdraw this money from the bank for the cost of construction or the land cost then, a certificate of CA is a must. Without the certificate of CA, this 70% of money cannot be used.
Accounts and Audit - CAs Core Activity
Yes, the core activity of CA has been covered in RERA. A CA can also do the audits of Real Estate Project. The role here in the audit would be to verify the transactions like the withdrawal of 70% of the money deposited in a separate bank account, as discussed above. Furthermore, it is to be noted that a separate or another CA is required to get the audit done. That means a CA who certifies the documents of the project cannot be appointed as an audit.
Represent before RERA Authority
This is one of the Act in which it is specifically stated that a CA can represent before the RERA Authorities. Basically, there are 3 authorities before which CA can represent:
- Real Estate Authorities
- Appellate Authorities
- Adjudicating Officers
Since many roles are given to the CA in RERA it has also created a filed of due diligence. If any client of a CA wants to consult with regards to Housing Loan, Capital Gain, etc. the due diligence can be done of builders for the client.
Because the data of the real estate project is available online and also since the CA has knowledge of law due diligence will be easy to perform. Giving CA a new field of work.
CA can now file Public Interest Litigation (PIL) with RERA. Hence, giving CA a filed of legal practice. This means a CA can represent on behalf of customers, real estate agents, builders, landowners, contractors, financier and everybody who have any grievance under RERA.
Last but not least a CA can work in the field of documentation. Since many documentations are to be prepared in a real estate project, someone needs to prepare them. And CA can do that too. Documentations related to Agreement for sale, Development Agreement, Stamp Duty, Society formation, Conveyance, etc can be done.
So, if we conclude RERA has opened a new and interesting filed for CA. It has also given opportunities to CA to expertise in this field.
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