RWAs Must File Audits to Avoid Deregistration, Real Estate News, ET RealEstate

November 11, 2024
1 min read
RWAs Must File Audits to Avoid Deregistration, Real Estate News, ET RealEstate


<p>Representative image </p>
Representative image

GURUGRAM: The district registrar has instructed registered societies and RWAs in the city to submit timely audit returns, warning that failure to do so could lead to deactivation or cancellation of registration. This action is aimed at addressing widespread non-compliance with the Haryana Registration and Regulation of Societies (HRRS) Act, 2012, which mandates the submission of financial statements, audit reports, and annual general meeting (AGM) minutes within six months after the financial year’s end.

Under the HRRS Act, societies are required to submit a balance sheet, a statement of receipts and expenditures, and an auditor’s report. Societies must also hold an AGM within the same six-month timeframe, where audited financial accounts should be approved and adopted.

Additionally, the act specifies that each society should submit an annual report certified by both the president and secretary of the governing body. However, according to officials, many societies fail to meet these requirements, often skipping AGMs and failing to disclose financial statements, leading to internal disputes.

“There are still many societies that have not filed returns even after a year of registration,” said district registrar Lokesh Yadav, emphasising that societies failing to comply with annual return requirements would be deemed inactive and could face registration cancellation. Yadav said that complaints arising from non-compliance would be handled by HRRS Act provisions.

The move has been welcomed by RWAs, who believe it will help eliminate defunct societies and enforce transparency. “It’s essential for ensuring proper governance,” said Praveen Malik, president of Rising Homes RWA. Malik also suggested that the law should be tailored to better address the unique needs of residential and plotted colonies.

  • Published On Nov 11, 2024 at 08:30 AM IST

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