17. Certification Requirements by CA, Engineer, and Architect under RERA
Introduction
The Real Estate (Regulation and Development) Act, 2016 introduced a compliance framework where project progress and fund utilization are not left solely to the declaration of the promoter. Instead, RERA requires independent certification by professionals such as the Chartered Accountant, Engineer, and Architect.
This requirement is extremely important because real estate projects involve substantial buyer funds, technical construction milestones, and phased development. By involving professionals, RERA creates a system of independent verification and accountability. The objective is to ensure that withdrawals from the project bank account and disclosures made to the authority are supported by professional validation.
In practice, these certifications act as a bridge between the promoter’s claims and the actual status of the project.
Legal Framework
The certification requirement is closely linked with the provisions relating to project registration, withdrawal from the separate bank account, and ongoing compliance. Under RERA, funds collected from allottees and deposited in the separate account can be withdrawn only in proportion to the percentage of completion of the project.
For this purpose, certifications from the Engineer, Architect, and Chartered Accountant are required. Each professional plays a different role, and together they ensure that the promoter does not withdraw funds beyond the actual progress of the project.
This mechanism strengthens financial discipline and reduces the risk of fund diversion.
Purpose of Professional Certification
Professional certification under RERA is not merely a procedural formality. It serves a regulatory purpose by ensuring that project execution, technical progress, and financial utilization are aligned.
The certification framework is designed to answer three important questions:
- Whether construction has actually progressed
- Whether the percentage of completion is correctly determined
- Whether funds withdrawn are being used for the concerned project
These certifications provide comfort to the authority, buyers, and other stakeholders that the project is being monitored through independent professional oversight.
Role of Engineer
The Engineer is generally responsible for certifying the stage of construction and physical progress of the project. This certification focuses on the technical execution of the project at site level.
The Engineer’s role is important because fund withdrawals are linked to actual construction progress. If construction progress is overstated, the promoter may be able to withdraw more funds than justified.
Therefore, the Engineer must assess the actual work completed and ensure that the certification reflects ground reality.
Engineer certification should be based on site verification and technical assessment. Certification without proper verification can create liability if later found inconsistent with actual progress.
Role of Architect
The Architect generally certifies the percentage of completion and verifies whether the construction is aligned with approved plans and sanctioned drawings.
This role is significant because RERA emphasizes adherence to sanctioned plans. Any deviation from approved plans may affect buyer rights and regulatory compliance.
The Architect’s certification helps establish whether the project is progressing in accordance with approved specifications and layout.
In practical terms, the Architect’s certification becomes important where there are disputes regarding:
- Changes in layout
- Alteration in specifications
- Deviation from approved plans
- Completion percentage
Role of Chartered Accountant
The Chartered Accountant plays a critical role in certifying the financial utilization of funds. The CA must verify whether the amounts withdrawn from the separate bank account are in proportion to project completion and whether such funds have been used for the concerned project.
This certification is central to preventing diversion of funds. Since one of the major objectives of RERA is to ensure that buyer money is used only for the project for which it is collected, the CA’s role carries significant responsibility.
The CA is expected to examine financial records, project cost statements, withdrawals, utilization records, and supporting documents before issuing certification.
CA certification under RERA should not be treated like routine paperwork. It requires careful verification of project-wise fund flow, cost allocation, and withdrawal eligibility.
Practical Challenges in Certification
In practice, professional certification under RERA can become complex because real estate projects involve multiple teams, vendors, approvals, and cost components. The Engineer, Architect, and CA may each rely on different sets of data, and lack of coordination can result in inconsistent certifications.
For example, the technical team may certify a certain percentage of completion, while financial records may show disproportionately higher fund utilization. Such mismatch can create regulatory concerns.
Another practical issue is allocation of common costs, especially in large projects developed in phases. Determining whether a cost belongs to a particular registered project or a broader development can be challenging.
Professionals must therefore ensure that certifications are based on proper documentation, reasonable verification, and clear assumptions.
Risks of Improper Certification
Improper certification can expose not only the promoter but also the certifying professionals to risk. If certificates are found to be inaccurate, misleading, or issued without adequate verification, authorities may question the credibility of the entire compliance process.
Risks may include:
- Regulatory action against the promoter
- Scrutiny of professional conduct
- Buyer complaints alleging fund misuse
- Disciplinary proceedings against professionals
- Reputational damage
The risk is higher where certification is used to justify withdrawal of funds from the project account.
In disputed projects, professional certificates often become key evidence. Therefore, supporting working papers and documentation should be maintained carefully.
CABTA Insights
- Professional certification is a control mechanism, not a formalityIt is intended to independently validate project progress and fund utilization.
- CA, Engineer, and Architect roles must be clearly distinguishedEach professional certifies a different aspect, and overlap or confusion can create compliance risk.
- Documentation is the strongest defenseProper working papers, site records, cost statements, and reconciliation reduce future exposure.
- Certifications should be consistent with portal disclosuresAny mismatch between certificates, financial records, and RERA updates may trigger scrutiny.
- Professionals should avoid mechanical certificationIndependent judgment and verification are essential under RERA.
