February 26, 2024: The Odisha Real Estate Regulatory Authority (ORERA) in a recent order stated that a promoter developing a project from its own resources shall not be required to furnish annual audit certificate (AAC) for the project till the time no booking amount is received from the customer.
Once booking amount is received from a customer, filing of the AAC will be mandatory from such period under the RERA Act, 2016.
According to Section 4 of RERA Act, 70% of the fund received from home buyers for a project has to be deposited in an Escrow account by the developer. This money will be used towards the development of the said project only and can’t be diverted. Also, the RERA Act directs developers to file the quarterly progress report (QPR) and AAC to know exactly that the money used in construction is proportionally used so that the project is completed according to its deadline.
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