Karnataka RERA Makes Quarterly Project Data Accessible to ALL

Karnataka RERA’s decision to make quarterly updates of registered real estate projects publicly accessible marks a significant evolution from procedural compliance to substantive transparency in the real estate sector. While quarterly reporting under Section 11(1) of the Real Estate (Regulation and Development) Act, 2016 has always been mandatory, the enhanced public visibility of these disclosures empowers homebuyers, investors, lenders, and professionals with authenticated information regarding project progress, fund utilisation, approvals, inventory movement, and regulatory compliance. The initiative strengthens accountability by subjecting promoters and certifying professionals, including architects, engineers, and chartered accountants, to increased public and regulatory scrutiny. It also encourages market-driven discipline by enabling independent assessment of project viability and performance. For professionals, the development underscores the need for rigorous due diligence, comprehensive documentation, and robust audit trails, thereby transforming their role from mere certifiers of information to custodians of trust within an increasingly transparent real estate ecosystem.

Now in the Public Eye: Karnataka RERA Makes Quarterly Project Data Accessible to ALL

The real estate sector in India has undergone a structural transformation with the enactment of the Real Estate (Regulation and Development) Act, 2016 (RERA). At its core, the legislation seeks to establish transparency, accountability, and efficiency in an industry historically marked by information asymmetry and execution risks.

a. In this direction, the initiative of the Karnataka Real Estate Regulatory Authority to make Quarterly Updates of registered real estate projects publicly accessible represents a significant and progressive regulatory progression. While quarterly reporting has always been mandated under the RERA Act, the enhanced accessibility and visibility of such disclosures mark a shift from mere compliance to meaningful transparency.

b. This transition effectively bridges information asymmetry by providing stakeholders, especially homebuyers, with access to authenticated project data, thereby reducing reliance on informal assurances.

c. It also redefines compliance from a passive exercise to active disclosure, as developers and professionals must now ensure accuracy and consistency under public scrutiny.

d. Further, by enabling buyers, investors, and lenders to independently evaluate project performance, the framework introduces a layer of market driven discipline alongside regulatory oversight.

e. The initiative significantly enhances stakeholder confidence by offering transparency in construction progress, approvals, fund utilization, and financial health of projects, while also empowering investors and lenders with reliable data for informed decision-making.

f. Importantly, this increased transparency deepens accountability across the real estate ecosystem encompassing promoters, landowners, architects, engineers, chartered accountants, agents, and financial institutions each of whose roles are now directly reflected in quarterly disclosures.

Regulatory Requirement: Quarterly Updates under RERA – As per the provisions of the Real Estate (Regulation and Development) Act, 2016 and corresponding Karnataka RERA Rules, the promoters are required to submit quarterly updates for every registered real estate project. These quarterly updates include:

The authority collects the information from the promoter on progress of the project through Quarterly updates / Quarterly Progress reports. Quarterly Progress Report under RERA is designed to ensure transparency and provide updates on the status of the real estate project to both the regulatory authorities and the allottees. The details of such a report, as indicated in the documents, are typically included in the various forms and rules under RERA. Each of these forms is part of the compliance documents necessary for submission to the RERA authority to demonstrate the physical and financial progress of the project.

Section 11(1) of the RERA Act mandates the promoter to submit the information on quarterly basis once receives the real estate registration. the details are presented in a Tabular manner for the reader to understand better –

Annexure – 1 – Information and required submit during the Quarterly updates

1. Project Information: Prefilled information on the website of the Authority

a. Project Name

b. Promoter Name

c. RERA Registration Number

d. Total Cost of the Real Estate Project

e. Number Buildings / Towers / Phases

f. RERA Separate Banke account Number

g. Total inventory / units available – tower/building/phasewise

2. Financial Progress:

a. Total Amount Collected from Allottees during the Quarter

b. Total Amount deposited to RERA Separate account of the project

c. Total Amount Incurred by Promoter during the Quarter

d. Total Borrowings and Mortgage of project land

3. Inventory movement:

a. Total number of units booked

b. Total number of garage / Car parking booked / allotted

c. Balance available

4. Physical Progress of construction:

a. Percentage Completion of Construction Work – building wise, floor wise

b. Details of Completed activity – start date and end date

c. Status of Infrastructure Development (Roads, Water Supply, Electricity, etc.,)

d. Status of Amenities in the project (Clubhouse, Swimming pool, banquet hall)

e. Photos of work Progress – building wise / tower wise

5. Professional Certifications: Verification and Certification

a. Architect’s Certificate: Certifying the physical progress of percentage of completion of the project as per the approved plan.

b. Engineer’s Certificate: Valuation of the completed of the work at site

c. Chartered Accountant’s Certificate: Verification of total amount incurred, amount realised from the allottees, deposited into the bank account and eligible to withdraw, balance available

6. Legal Compliance: modification to plan Approvals, NOC’s

a. Adherence to sanctioned plans and project specifications

b. Details of any modifications or amendments to the original plan

c. Compliance with any legal and environmental requirements – various NOC’s obtained during the Quarter

7. Other compliances under the Act etc:

a. Report on formation of association of allottees if any

b. Report on labour welfare cess collected and deposited

c. Litigation / Legal cases or orders (interim / final) on the project land if any

Annexure 2 – Documents to be uploaded during the quarterly updates –

1. Photographs of work progress at project

2. Copy of various NOC’s obtained during the quarter

3. Copies of the Fixed Deposit receipt (if the excess amount is deposited in fixed deposit)

4. Copy of the litigation – order copy

5. Association formation during the quarter if any – copy of registration

6. Professional certificates in Form 4, Form 5 and Form 6

7. RERA Separate bank account statement for the Quarter -full statement (by way of attachment to Form 4)

Annexure – 3 As a professional, what are the precautions to be taken while issuing the Certificates

As a professional issuing certificates under RERA, it is crucial to exercise due diligence and adhere to a range of precautions to ensure accuracy, compliance, and integrity. Here are key precautions to consider:

1. Understanding the scheme of the project and Thorough Verification

a. Understanding the scheme of the Project: professional shall understand the type, size of the project, scheme of development, promises made and the details as provided during the registration. This is the basis for the professionals to issue the certificates.

b. Check Documentation: Verify all project-related documents, including land titles report, approvals, and sanctioned plans (one time exercise and make a note of the details)

c. Cross-Check Data: Ensure the data provided by the promoter matches the actual progress and financial records.

2. Adherence to RERA Guidelines

a. Stay Updated: Regularly review the latest RERA circulars, notifications, and guidelines.

b. Compliance: Ensure all certificates comply with the specific requirements outlined by RERA in your state.

3. Detailed Inspection

a. Site Visits: Conduct regular site visits to assess the physical progress of the project (by the Architect before issuance of Architect Certificates)

b. Quality Checks: Evaluate the quality of construction and adherence to approved plans and specifications (Engineer before issuance of the Certificates)

4. Accurate Financial Reporting

a. Understand the components – one time exercise of understanding the components of cost. This is very important concept, against each cost, the chartered accountant certifies the cost incurred.

b. Cost incurred during the quarter: Verify the costs incurred vis-à-vis cost estimated based on the books of accounts maintained by the promoter

c. Amount Realised from the Allottees and deposit into RERA Separate bank account: verify the amount realised from the allottees and whether minimum 70 % amount is deposited into the RERA Separate bank account

d. Borrowings if any: any borrowings during the quarter, ensure 100% borrowings shall be deposited into the RERA Separate bank account

5. Professional Integrity

a. Objectivity: Maintain objectivity and independence while issuing certificates.

b. Ethical Standards: Adhere to ethical standards and avoid conflicts of interest.

6. Documentation and Record Keeping

a. Maintain Records: Keep detailed records of all inspections, verifications, and communications with the promoter.

b. Backup Documents: Maintain copies of all supporting documents and certificates issued.

7. Legal Compliance

a. Legal Awareness: Be aware of all legal requirements and implications related to issuing RERA certificates.

b. Insurance: Ensure the project is adequately insured as per RERA guidelines.

8. Clear Communication

a. Transparent Reporting: Clearly report any discrepancies or issues found during verification.

b. Detailed Certificates: Provide detailed and comprehensive certificates, outlining the basis of your verification and findings.

9. Continuous Learning

a. Training: Participate in ongoing training and development programs related to RERA compliance and real estate regulations.

b. Networking: Engage with other professionals and regulatory bodies to stay informed about best practices and updates.

10. Example Clauses for Certificates:

a. Architect’s Certificate: “I have inspected the site and verified the construction progress as per the approved plans. The quality of construction is satisfactory, and the project is proceeding as scheduled.”

b. Engineer’s Certificate: “Based on my inspection, the project has achieved the specified milestones in terms of structural completion. The quality of materials used is as per the standards prescribed.”

c. Chartered Accountant’s Certificate: “I have verified the financial records and bank statements. The funds collected from allottees have been appropriately utilized, and the remaining amount is duly deposited in the escrow account.”

From Passive Compliance to Active Disclosure – Developers and professionals are no longer filing data merely to meet statutory requirements; the data is now subject to public scrutiny, increasing the need for accuracy and consistency.

From Regulatory Oversight to Market Driven Discipline – Public availability of data enables market participants buyers, investors, and lenders to independently assess project performance, thereby introducing a layer of market accountability.

Implications for Professionals –

a. Certifications are no longer internal documents; they are publicly relied upon

b. Increased exposure to regulatory scrutiny and third-party reliance

c. Need for required documentation, working papers, and audit trails

d. Higher standards of professional skepticism and due diligence

For Homebuyers and Allottees, ability to track actual construction progress against declared timelines, visibility into status of the approvals, movement of inventory, greater confidence in fund utilization and project viability

For Investors and Lenders, Access to reliable, regulator verified financial and physical progress data, improved credit appraisal and risk assessment, early identification of stressed or non performing projects, market acceptance and bookings, collection and utilisation of funds.

For Promoters, establish proper internal compliance systems, align project accounting with RERA reporting formats, ensure consistency across financial, taxes, technical, and legal disclosures.

For Chartered Accountants, evaluate certification methodologies, maintain detailed reconciliation between books of accounts, bank statements, project cost records. Ensure alignment between physical progress and financial utilization. this marks a shift from certifiers of information to custodians of trust in a transparent regulatory ecosystem.

For Engineers and Architects, strengthen documentation supporting stage wise completion and Ensure coordination with financial certifications

To conclude, the role of professionals under RERA Act, particularly Chartered Accountants, has evolved substantially, with certifications now subject to public view and scrutiny, necessitating documentation, due verification, and strong audit working papers. For promoters, this calls for strengthened internal compliance systems and alignment of accounting, GST, financial practices with RERA requirements, while professionals must ensure reconciliation across financial and technical records and maintain consistency in reporting. Ultimately, this initiative is transformative, bringing a culture of proactive compliance, integrated reporting, enhanced governance, and ethical responsibility, laying the foundation for the improved efficiency, greater trust and credibility in the real estate sector.

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The author, CA.Vinay Thyagaraj is founder partner at M/s.Venu & Vinay, Chartered Accountants, Bengaluru, he can be reached at vinay@vnv.ca