Certificate by a Chartered Accountant is to be issued with set of objects and intentions with an intent to express the professional opinion or state the facts based on the information, explanation, documents received from the promoter.
Provison to Sec 4(2)(l)(D) of RERD Act having reference and requirement of CA Certificate – which is reproduced below –
Real Estate sector is one of the exception sector where end-consumer pays for the product before getting delivery of such product. That is, unlike other goods or services, customers pay significant purchase price in advance, which is often as large as life savings of a person and hence faces huge risk.
On the other hand, over-ambitious builders & developers engaged into unsustainable practice of commencing second project with the funds collected from buyers of first project, resulting in delay in or failure to deliver possessions.
Curbing such practices and protecting interests of such buyers of property is the one of the one of the important objective of introducing RERA, 2016. Chartered Accountants have been entrusted with responsibility to fulfil this objective through certification (form 3) and audit (form 5).
Though both Form 3 & Form 5 are to be issued by a Chartered Accountant, the law envisages different purposes to be served by each form. Thus, this article aims to distinguish these forms in concise and comprehensive manner.