MahaRERA crackdown on conflict of interest: Notices sent to CAs; ICAI urged to take serious note

As per a report of the Free Press Journal, Maharashtra Real Estate Regulatory Authority (MahaRERA) has sent notices to Chartered Accountants (CAs) for alleged conflict of interest and violation of MahaRERA rules. The regulator has also written to the Institute of Chartered Accountants of India (ICAI) to take note of the matter.

MahaRERA has identified CAs who have allegedly been auditing accounts of developers, while also being engaged as project management consultants, valuers, or project monitoring consultants for the same developers. This dual role is in direct violation of MahaRERA rules, which prohibit such conflicts of interest.

The notices issued by MahaRERA require the CAs to explain their dual role and show cause why they should not be penalized for violating MahaRERA rules. MahaRERA has also asked ICAI to investigate the matter and take appropriate action against the errant CAs.

MahaRERA has also sent a notice to ICAI, to take notice of these CAs and suggested ICAI to train and educate the CAs about the intricacies of the RERA Law, Rules & Regulations regularly.

This move by MahaRERA is a part of its ongoing efforts to ensure compliance with rules and regulations in the real estate sector. The regulator has been actively monitoring the sector and taking strict action against developers and other stakeholders for non-compliance. Experts have welcomed this move by MahaRERA and have urged the regulator to take similar action against other professionals who may be violating MahaRERA rules. This will help in ensuring transparency and accountability in the real estate sector, which has been plagued by malpractices and frauds in the past.

In conclusion, MahaRERA's actions against CAs for alleged conflict of interest and violation of rules sends a strong message to all stakeholders in the real estate sector. Compliance with rules and regulations is essential for the growth and development of the sector.

At Monik Advisors LLP, we help our clients comply with MahaRERA regulations and ensure that they stay on the right side of the law.