CA certificate under RERA in Surat

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CA certificate under RERA

What is a CA Certificate Under RERA?

To guarantee that the money is taken out of the RERA-designated bank account that is used only for the registered project, a Chartered Accountant (CA) Certificate is granted under the Real Estate (Regulation and Development) Act, 2016 (RERA).

The certificate ensures financial transparency and complies with RERA rules by comparing predicted and actual costs.

When is a CA Certificate Required?

A CA certificate is required at key project stages, including:

When funds are withdrawn from the RERA account.

During quarterly return filing as per RERA regulations.

At the time of project progress reporting.

How is a CA Certificate Prepared?

The CA certificate must include:

Cost Breakdown

Land Cost: Land acquisition, development rights, legal expenses, government fees, and related costs.

Construction Cost: Estimated vs. actual costs, taxes, loan interest, and total expenses.

Financial Details

Number of flats/shops booked.

Amount received from buyers as booking money or instalments.

Status of bookings in a specific Excel format (to be uploaded during quarterly filings).

Who Is in Charge of the CA Certification?

A Chartered Accountant (CA) is responsible for:

Verifying and certifying the proper use of project funds.
Ensuring compliance with RERA financial regulations.
Reporting any financial irregularities or misuse in the certificate.

Why is a CA Certificate Important?

Ensures Timely Possession

Prevents misuse of funds by promoters.

Helps government authorities regulate and monitor financial transactions in real estate.

Ensures that money from financial institutions and public investors is used strictly for the project.

Where to Download the CA Certificate Format?

The official format (Form-3) can be downloaded from the Gujarat RERA website:

https://gujrera.gujarat.gov.in/

Get answers to all your queries

Can a promoter withdraw all funds without a CA Certificate?

No, promoters can only withdraw 70% of the collected funds, and a CA Certificate is mandatory for withdrawals.

What happens if the CA Certificate is not submitted?

RERA sanctions, project suspension, or legal action may result from non-submission.

How do Form-3 and Form-5 differ from one another?

Form 3: Necessary for money withdrawals from the RERA account.

Form-5: An annual financial report submitted within six months after the financial year ends.

Can a CA be held liable for errors in the certificate?

Yes, a CA may face disciplinary action or license suspension for issuing false certificates.

What documents does a CA need to issue the certificate?

Bank statements for the project.

Land and construction cost details.

Sale and payment records from buyers.

Does a CA need to visit the project site?

Yes, the CA must verify financial records and project progress before issuing the certificate.

Are small developers also required to get a CA Certificate?

Yes, all RERA-registered projects need a CA Certificate, regardless of size.