Odisha RERA Demands Builders Share Bank Details for Transparency

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    In a move aimed at boosting transparency in housing project executions, the Odisha RERA (ORERA) has laid down a new requirement for project promoters. They’re now mandated to annually submit audit reports of their project-specific bank accounts.

    Under this directive, each housing project with bookings from homebuyers must have its dedicated bank account. The intention is to ensure funds collected for a project are exclusively spent on its development. According to the Real Estate (Regulation and Development) Act of 2016, a significant portion of the funds – precisely 70% of the money received from the buyers – must be deposited into a separate account with a scheduled bank. This is to guarantee that construction costs are adequately covered.

    The guidelines specify that withdrawals from this account are only permissible post-verification by a professional team – an engineer, an architect, and a practicing chartered accountant. This team will certify that the withdrawals are in line with the project’s progress.

    Promoters are required to have these accounts audited by a practicing chartered accountant within six months after the fiscal year concludes. They must then produce a certified statement of accounts. This audit process includes verifying that funds for a specific project were indeed used for its intended purpose and that withdrawals matched the project’s completion stage.

    ORERA’s chairman, Siddhanta Das, emphasized the importance of the annual audit certificate in maintaining financial transparency and ensuring projects are executed correctly, safeguarding homebuyers’ interests. Promoters receiving bookings are obliged to maintain these separate accounts, undergo annual audits, and submit their reports.

    However, promoters funding projects independently are exempt from this requirement. Homebuyers have expressed support for this initiative but stress the need for ORERA to ensure promoters adhere to the new rule.

    Also read: Greater Noida Authority Allocates Funds for Airport and Land Acquisition

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