5.1 There are no express provisions in the legislation, regulations or rules that require Form 3 to be uploaded with a quarterly update of the project. However, Article 11(1)(e) provides: `The organiser shall. . . . Enter all the details of the proposed project. the current quarterly status of the project”, which is often interpreted as „the download of Form 3 with Form 1 and Form 2”. Interestingly, the „POS for Updating Registered Projects” issued by MahaRERA provides a field for the voluntary download of Form 3 as opposed to the mandatory download of Form 1 (Architect Certificate) and Form 2 (Engineering Certificate). Given the second wave of the Covid-19 pandemic and the resulting lockdowns, MahaRERA has issued an order under No. 21/2021 of 06.08.2021, which granted a six-month extension from 15.04.2021 to 14.10.2021 for all legal provisions in accordance with § 11 of the Act. Although both Form 3 and Form 5 must be issued by an auditor, the law provides that each form must serve different purposes. Therefore, this article aims to distinguish these forms in a concise and comprehensive manner.
In exercising the powers conferred by Article 37 in conjunction with Articles 34(a), 34(f) and 34(g), the following instructions must be issued with immediate effect: Limiting these practices and protecting the interests of these real estate buyers is one of the main objectives of the introduction of RERA, 2016. The auditors were tasked with achieving this objective through certification (Form 3) and audit (Form 5). Form 3 must be submitted at the time of project registration and if the proponent wishes to withdraw funds from the separate account. Section 4 of the Act requires the proponent to have its financial statements audited in practice by an auditor within six months of the end of each fiscal year and to submit financial statements duly certified and signed by that auditor. On the other hand, overly ambitious builders and developers have an unsustainable practice of starting a second project with funds raised from buyers of the first project, resulting in delays or non-deliveries of goods. 4.2 The annual report on the statement of account on Form 5 must be prepared within 6 months of the end of each fiscal year, that is, no later than September 30 of the year following the fiscal year in question. 3.2 On the other hand, the auditor certifies in Form 5 that the amount collected for a particular project was only used for such a project and that the withdrawals corresponded to the percentage of completion of the project. The purpose of the annual audit is to prevent and report on the misappropriation of funds from one project to another.
Subject: Extension of deadlines for filing Form 5 The second reservation in Article 4(l)(D) prescribes which certificates must be obtained in order to withdraw funds from the separate account containing a certificate to be obtained from a certifying authority. 4.1 The certificate on Form 3 must be obtained with the Architect Certificate and the Engineering Certificate if the Organizer wishes to withdraw money from a separate account. The dawn of RERA put an end to the grievances that the manufacturers have engaged in. 1.4 Note 1 of Regulation 4 of the Maharashtra RERA (General) Regulations, 2017, requires that the auditor who certifies the progress of the registered real estate project for the purpose of disbursing amounts from the separate account be a different entity from the auditor who is the auditor of the developer`s company. Form 3 – To be found in the current auditor, except the auditor, Form 5 – Annual Report on the Auditor`s Financial Statements. It certifies that the amount collected for a particular project was used only for such a project and that the withdrawal corresponded to the percentage of completion. 1.3 The third reservation in Article 4(2)(1)(d) of the RERA also provides that the promoter must have its financial statements audited in practice by an auditor within six months of the end of each financial year and must present financial statements duly certified and signed by that auditor and must be audited during the audit: whether the amounts collected for a particular project for the project and the withdrawal corresponded to the ratio to the percentage of project completion. 5.2 With respect to Form 5, Rule 4 clearly requires that the annual report be uploaded to the statement of account (i.e., Form 5) duly certified and signed by the auditor who is the auditor of the promoter`s company. Form 5 is an annual report on the annual accounts within 6 months of the end of the financial year. Form 3 – Certificate for withdrawal of funds from a separate account. The approved accrual account certifies the costs incurred for construction costs and land costs.
CA is also required to certify the share of construction and land costs in the total estimated cost of the project. 3.1 When issuing the Form 3 certificate, HQ shall verify the costs incurred for construction and land costs. CA is also required to certify the share of costs incurred in the estimated total cost. This is to ensure that funds are not deducted from a separate account of a project than is necessary for the realization of the respective project. . 2.1 The certificate of withdrawal of funds from a separate account can be obtained in „Form 3”, while the auditor`s annual certificate is available in „Form 5”. .