K-RERA Audit Deadlines and Penalties for 2024-25, and What Form 7 Tells a Flat Buyer
Karnataka's real estate regulator has set penalties for builders who file their annual audit late. The audit itself, made on a prescribed format called Form 7, deserves a buyer's attention whether a flat is already booked or still being considered. Unlike a sales brochure, it speaks to a single concern: did the money from buyers go into the building?
A Timeline of the 2024-25 Filing
The table below lists the key dates in order.
| Date | What happened |
|---|---|
| September, November and December 2025 | Three circulars each pushed the deadline back |
| 31 December 2025 | Final extended date |
| Until 20 January 2026 | Last window to file with no penalty |
| End of January through 31 March 2026 | Filing accepted, with a penalty |
| From 1 April 2026 | Recovery proceedings against promoters still in default |
The RERA Act's sections 38(1) and 60 allow the penalty, which grows with a project's estimated cost, per year of default. The figure is Rs. 20,000 for a project under Rs. 25 Crore and Rs. 25,000 up to Rs. 50 Crore. Beyond that it rises to Rs. 50,000 for projects as large as Rs. 100 Crore, and to Rs. 1 Lakh above it.
These amounts are small against a project's cost, which makes them a prompt more than a punishment. What deserves a buyer's notice is the failure to meet a date that had moved three times. It points to a builder that lacks staff or money, or does not take the regulator seriously.
The Reason Behind the Audit
The RERA Act's section 4(2)(l)(D) makes it the promoter's duty to deposit 70% of buyers' money in a separate account, used only for land and construction. Each withdrawal must match the share of work completed, supported by certificates signed by the engineer, the architect and a practising accountant.
The yearly audit adds a further layer and must be completed within six months after the financial year ends. In it the auditor says whether collections were applied to the project and whether withdrawals tracked completion.
Where Form 7 Is Filed
On the K-RERA portal, a promoter opens the Annual Audit section, selects the project's registration number and uploads audited accounts. A registered project or phase that keeps its own account is filed separately.
A chartered accountant signs the report and answers to the professional body, so it outweighs the builder's own updates. Even so, it audits money alone. It says nothing on construction quality or the date of possession.
Getting a Copy
The builder files through a private login, so a buyer cannot simply download the report. A buyer past the booking stage has good grounds to request the most recent Form 7 together with the portal acknowledgement. Organised builders reply within days, and unwillingness to share a routine document tells its own story.
The public project page adds context. Use the project's name or registration number on the portal and tabs open for bank details, uploaded documents, complaints and quarterly updates. The updates have a section on construction cost, beside the progress of structure, finishing and amenities.
A Short Reading Guide
A buyer needs no accounting background. Start by confirming that the project name, registration number and promoter agree with the agreement for sale. Then see that the form is for the latest year due and was filed on time.
Next, see what the auditor confirms on collections and on withdrawals. Any remark or qualification should be answered in writing by the builder. If withdrawals outran construction, buyers' money left the account sooner than the structure rose, and records withheld from the auditor are equally worrying.
Reading It Next to the Quarterly Updates
The four quarterly updates fall due on 15 July, 15 October, 15 January and 15 April, and a January 2026 circular lets late or missing ones draw fines under sections 38(1) and 61. Spending in the audited year ought to match the work reported on site over the same months.
Heavy spending alongside slow work deserves questions. Dated photographs taken at the site show which account is nearer the truth.
Without an Audit on File
An absent audit does not prove that funds were misused, but it removes an independent check that falls due once a year. Buyers already paying should put a written question to the builder about the filing date, and file the reply.
Prospective buyers can pause payments beyond the booking amount until they see the filing. Being current on audit and updates is a basic pass mark, and the land title, the approvals and the builder's history of handovers still need checking.
