🙏🙏🙏🙏🙏🙏🙏Maharashtra Real Estate Regulatory Authority issues SCN to Chartered Accountant for Violation of Regulations

Clipped from: https://www.taxscan.in/maharashtra-real-estate-regulatory-authority-issues-scn-to-chartered-accountant-for-violation-of-regulations/274420/?utm_source=izooto&utm_medium=push_notifications&utm_campaign=Maharashtra%20Real%20Estate%20Regulatory%20Authority%20issues%20SCN%20to%20Chartered%20Accountant%20for%20Violation%20of%20Regulations

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A Show Cause Notice was sent to a chartered accountant by the Maharashtra Real Estate Regulatory Authority (MahaRERA) for infringing the regulations under the Real Estate (Regulation and Development) Act.

Additionally, the authority informed the Institute of Chartered Accountants of India (ICAI) regarding this matter and also to train the accountants to comply with the real estate regulations.

In order to withdraw money, the promoters must submit Form 3 that has been certified by the project auditor to be consistent with MahaRERA regulations. Additionally, a Statutory Audit Report by the Statutory Auditor must be submitted. Regulations made it very apparent that it needed to be done by several accountants or accounting firms.

The MahaRERA inquiry, however, uncovered numerous inconsistencies in the UDIN numbers provided by the Chartered Accountant. When the promoters’ documents were scrutinised, it was discovered that the form and the Statutory report were both from the same chartered accountants.  The Chartered Accountant was working as Project Auditor as well as Statutory Auditor.

MahaRERA was set up in 2017 in conjunction with the Real Estate (Regulation and Development) Act (RERA), which was passed by the Indian Parliament in order to govern the real estate sector and foster accountability, efficiency, and transparency.

The authority keeps track of all projects and agents who have registered, and it also offers investors and purchasers a way to report developers and agents who they believe have violated the Real Estate (Regulation and Development)  Act.

As per the reports, it was necessary to identify audit gaps, hence it was mandated that the Project auditor and the Statutory auditor should be distinct. If they are both the same individual, there is a perception that the promoters are concealing something.

According to the legislation, a chartered accountant cannot undertake two distinct tasks at the same time. The project’s statutory auditor may not be the auditor handling the project. It is undoubtedly against the law if anyone does that.

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