K-RERA Annual Audit Report (Form 7): What It Shows and How Buyers Can Check It

Every RERA-registered project has to get its accounts audited once a year, and in Karnataka the result is filed with K-RERA in Form 7. The audit answers one question that matters to anyone paying instalments for an unfinished flat: is the buyers' money being spent on this project? This guide explains what the audit covers, the filing dates and penalties for 2024-25, and how a buyer in Bangalore can use it.

Why the Law Asks for a Yearly Audit

Section 4(2)(l)(D) of the RERA Act requires a promoter to keep 70% of the money collected from buyers in a separate bank account. That money is meant only for the cost of the land and of construction. Withdrawals have to match the percentage of the project completed, and each one needs certificates from an engineer, an architect and a chartered accountant in practice.

The same clause adds a yearly check on top of those certificates. The promoter must have the project accounts audited within six months of the end of each financial year. The auditor's statement has to confirm two things, which are set out below.

• The amounts collected for the project were used for that project
• The withdrawals from the separate account kept pace with the percentage of completion

What Form 7 Is

Form 7 is the format in which that annual audit report reaches K-RERA. The promoter logs in to the Annual Audit section of the K-RERA portal, picks the project registration and uploads the form with the audited accounts. A separate filing is needed for each registered project or phase, because each one has its own account.

The form is signed by a chartered accountant, who is answerable to the professional body for what is certified. That gives it more weight than the promoter's own quarterly updates. It is still an audit of money, so it does not vouch for build quality or for the possession date.

The 2024-25 Deadlines and Penalties

For the financial year 2024-25, K-RERA extended the filing date through circulars of 12 September, 15 November and 12 December 2025. The last date then became 31 December 2025. Many promoters still missed it, and a circular in January 2026 set out what would follow.

Promoters were given a final window up to 20 January 2026 to file without a penalty. From 21 January to 31 March 2026, the report had to be filed along with a penalty. Recovery proceedings were to begin from 1 April 2026 against those who had still not complied. The penalty is levied under sections 38(1) and 60 of the Act and rises with the size of the project.

These sums are small beside the cost of a project, so the penalty is a prod and not a punishment. Its real value to a buyer is as a signal. A promoter who misses a date that was extended three times is either short of staff, short of funds or indifferent to the regulator.

How a Buyer Can Check the Audit

The audit is filed through the promoter's login, so the simplest route is to ask for it. A buyer who has paid a booking amount has good reason to ask the builder for the latest Form 7 and the portal acknowledgement. A builder with its filings in order usually shares both within a few days. Hesitation over a routine request is worth noting.

The public project record on the K-RERA portal supports the same check from another side. Searching the project by name or registration number opens tabs for bank details, uploaded documents, complaints and quarterly updates. The quarterly updates carry a section on the status of construction cost, next to the stage of the structure, finishing and amenities.

What to look for in the report

The form is short, and a buyer does not need accounting training to read it. The points below cover most of what it reveals.

• The project name, registration number and promoter entity match the agreement for sale
• The financial year is the latest one due, with a filing date inside the deadline
• The auditor confirms that collections were used for the project
• The auditor confirms that withdrawals were in proportion to completion
• Any remark, exception or qualification the auditor has added is explained by the builder in writing

A qualified report deserves the closest reading. A remark that withdrawals ran ahead of construction means buyers' money has left the account faster than the building has risen. A remark that records were unavailable to the auditor is equally serious.

Reading the Audit With the Quarterly Updates

Promoters also file quarterly progress updates on the portal. K-RERA's circulars place the due dates on 15 July, 15 October, 15 January and 15 April for the four quarters. A January 2026 circular provides for penalties under sections 38(1) and 61 for late or missing updates.

The two filings should tell the same story. The money spent in the audited year should be consistent with the physical progress in the updates for the same period. A wide gap between heavy spending and slow construction is a reason to ask questions. A visit to the site, with dated photographs, settles which of the two is closer to the truth.

When the Audit Is Missing

A missing audit does not by itself prove misuse of funds. It does remove the one independent yearly check on the separate account. Buyers who are already paying instalments should ask the builder in writing for the filing date and keep the reply.

Buyers who are still choosing have an easier decision. Further payments beyond the booking amount are best held until the filing is shown. A project that is current on its audit and its quarterly updates has cleared a basic test, though title, approvals and the builder's delivery record still need their own checks.