RAJASTHAN COMPLIANCES
(QPRs and APRs Filings)
The Rajasthan real estate regulatory authority (RERA) has launched an online facility for the submission of quarterly progress reports (QPR’S) of registered projects from 01st January 2021.
There is no requirement of filing offline reports to the RERA Department. No separate fees are to be charged for submitting online reports within the due date. But if the QPR has been submitted and the promoter wants to modify it, it will attract a Rs 2,000/- fee if editing is done before the end of the upcoming Quarter and Rs 5,000/- after the end of the next quarter.
Timeline of Filing QPRs
As per Real Estate (Regulation and Development) Rules 2017, a quarterly progress report for a quarter must be submitted within 15 days at the end of the quarter. QPR for the October-December quarter is due on January 1 and needs to be submitted by January 15.
All those promoters who had submitted offline QPR for earlier quarters had to submit it online the previous quarters as well, said the order issued by RERA.
Timeline of Filing APRs
As per Real Estate (Regulation and Development) Rules 2017, APR (Annual report on statement of accounts) be submitted within 6 months at the end of every F.Y.
Information and Documents required for QPRs and APRs
For QPRs
As per the latest rules the promoter required three certificates from the Professionals for successful submission of QPRs. These certificates are:
R1: Architect Certificate
R2: Engineers Certificate
R3: CA Certificate (The CA who is issuing the R3 Certificate should not be Statutory Auditor of the company)
After obtaining the above certificates from respective professionals the Promoter required the below-mentioned information for filing in QPR reports.
Download Formation of information for filing in QPR reports
For APRs
As per the latest rules, the promoter required an R4 certificate from CA for the successful submission of APRs. This certificate is all about the Annual report on the Statement of Accounts.
The CA should be the Statutory Auditor of the Company.
After obtaining the above certificate from the respective Statutory Auditor the Promoter required the below-mentioned information for filing in APR reports.
Download Form R-4 – Annual Report on Statement of Accounts
General FAQ’s
1. Does the Act cover both residential and commercial real estate?
Yes. The Act covers both residential and commercial real estate. Section 2(e) defines ‘apartment’ and section 2(i) defines ‘ building’ which include both residential and commercial real estate.
2. Does the Act cover ongoing/incomplete project?
Yes. As regards the ambit of the Act, there is no distinction between an ongoing project and a future project. In other words, both ongoing/incomplete projects and future projects are covered under the Act.
As per section 3(1) first proviso, the promoters of all ongoing projects will need to register their projects with the Regulatory Authority, within 3 months of its commencement, i.e. 1st May 2017.
3. Does the Act cover all projects in urban areas and in rural areas?
Section 3(1) provides that all projects within a ‘Planning areas’ will require to be registered with the Authority and ‘planning area’ has been defined under section 2(zh).
However, section 3(1) second proviso gives powers to the Authority in the interest of ‘allottees’ to order/direct the promoter to register projects beyond the planning area, which has the requisite permission of the local authority.
4. Which projects are exempted from the ambit of the Act?
As per section 3(2) the following projects do not require to be registered under the Act:
Where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be development does not exceed eight, inclusive of all phases. The State Govt. may reduce the threshold below 500 sqm. or 8 apartments.
Where the promoter has received completion certificate for a real estate project prior to commencement of the Act, i.e. 1st May, 2017.
for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project.
5. At what stage can a promoter start to advertise his project for sale?
The promoter can advertise his project for sale after the project has been registered with the Regulatory Authority as provided in section 3(1).
6. What are the details to be furnished at the time of application for registration of real estate project with the Regulatory Authority?
Section 4 of the Act provides for details/information/documents and undertaking to be provided by the promoter to the Authority for registration of the project. Some additional informations/documents are also to be furnished as per Rule 3 of the Rajasthan Real Estate (Regulation and Development) Rules, 2017. The application for registration shall be filled in Form- A along with Declaration in Form-B. The application fee shall be paid as per rates given in rule 3(3) of the aforesaid Rules.
7. What are the formalities for the registration of a real estate project with the Regulatory Authority?
The promoter is required to make an application in Form-A and fees prescribed under Rule 3(3) of the Rajasthan Real Estate (Regulation and Development) Rules, 2017 along with the documents/ information and undertaking in Form-B to the Authority for registration of the project. In addition, the promoter is also required to append other/additional documents/information as specified in Rule 3(1) of the Rules.
In case of ongoing projects, some additional information are also required to be submitted.
8. In how many days the Regulatory Authority is required to register the real estate project?
The Regulatory Authority is required to register the project, if it is in compliance with the Act and the Rules and Regulations, within 30 days of the application having been received by the Authority.
9. What in case the application for registration of the real estate project is incomplete?
If the application for the registration of the project is not complete as required under the Act or the Rules and Regulations made there under, the Authority may grant an opportunity to the promoter to complete the application in all respects. However, in case of non-compliance the Authority has the power to reject the application, only after giving an opportunity to the promoter of being heard.
10. What is the period of validity of registration granted to a real estate project by the regulatory Authority?
As per section 4 the validity of the registration granted to a project shall be the period declared in Form-B by the promoter, in Form-B, under section 4(2)(I)(C), at the time of making the application for registration, within which he would complete the project.
11. Whether applicant-promoter may withdraw his application for registration?
Any applicant-promoter may withdraw his application. In case the promoter applies for withdrawal of application for registration of the project before the expiry of the period of thirty days provided under sub-section (1) of section 5, registration fee to the extent of five percent paid under Rule 3(3) of the Rules, or rupees twenty five thousand whichever is more, shall be retained as processing fee by the Authority and the remaining amount shall be refunded to the promoter within thirty days from the date of such withdrawal.
12. Is the promoter required to maintain an escrow account or a separate account? Is a separate account to be maintained for every project or it can be for one or more projects? What are the purposes for which the promoter can withdraw the money from the separate account?
Section 4(2) (I) (D) provides that the promoter shall maintain a separate account for every project undertaken by him wherein seventy percent of the money received from the allottees shall be deposited for the purposes of construction and land cost. The account has to be self maintained and is not an escrow account requiring the approval of the Authority for withdrawal.
Section 4(2)(I)(D) clearly provides that the funds can only be used for construction and land cost.
13. On what basis the promoter is required withdrawing the money from the separate account?
As per section 4(2)(I)(D) first and second proviso, the promoter is required to withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project. In addition, the promoter is permitted to withdraw from the separate account after it is certified by an engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project;
14. Is the promoter required to get his accounts audited?
Yes. As per section 4(2)(I)(D) third proviso, the promoter is required to get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be certified during the audit that the amounts collected for a particular project have utilized for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project.
15. Can the period of registration granted to a real estate project by the Regulatory Authority be extended? What is the definition of force majeure?
Section 6 envisages two situations within which the registration granted to a project can be extended. Extension of registration can be granted in case of force majeure, in addition, it can also be granted under reasonable circumstance, without the fault of the promoter, which shall not be more than a maximum period of 1 year.
Explanation to section 6 has defined force majeure to mean a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project.
16. What are the terms and conditions for extension of registration?
The registration may be extended on an application made by the promoter in Form-E prior to the expiry of the registration already granted.
The application for extension of registration shall be accompanied with a proof of payment through online mode, for an amount equivalent to half of the registration fee as specified under sub-rule (3) of rule 3 along with an explanatory note setting out the reasons for delay in the completion of the project and the need for extension of registration for the project, along with documents supporting such reasons. Provided that where extension of registration is due to force majeure the Authority may at its discretion waive the fee for extension of registration.
17. How will a flat buyer know, if the real estate project is duly registered under Regulatory Authority?
The Rajasthan RERA website (rera-rajasthan.in) would display all the registered projects.
It is mandatory that the advertisement for marketing of apartments in the real estate project must carry the registration number issued from the Authority.
18. Can promoter change the completion date for ongoing projects while registering?
Yes, while registering project, promoter needs to give revised date of completion which should be commensurate with the amount of development completed.
19. If an ongoing project is registered under Regulatory Authority, then will the Act be applicable for the entire project or will it be applicable only to units sold after registration?
Registration is of the Project/Phase and hence the provisions of the Act are applicable to all units of the Project/Phase.
20. What if an adjoining land is purchased by the promoter? Can he continue with same registration?
No, it has to be separately registered if the said adjoining land was not a part of the project which has been registered.
For more queries mail at csvikashverma@yahoo.com
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