Section 78 of the Real Estate (Regulation and Development) Act, 2016: Annual Report

Section 78 of the Real Estate (Regulation and Development) Act, 2016 (RERA) requires each Real Estate Regulatory Authority to prepare an annual report covering its previous year's activities and accounts, together with its work programme for the coming year. It also provides for placing that report before the relevant legislature.

Meaning and purpose of Section 78

The Authority means the Real Estate Regulatory Authority established under Section 20 of the Act. The appropriate Government, defined in Section 2(g), is the Central Government or the relevant State Government, as applicable under the Act. Section 78 promotes accountability by requiring periodic reporting of the Authority's administration, finances and planned activities.

Section 78: Statutory provisions

Section 78(1). The Authority shall prepare once in every year, in such form and at such time as may be prescribed by the appropriate Government,-

  1. a description of all the activities of the Authority for the previous year;
  2. the annual accounts for the previous year; and
  3. the programmes of work for the coming year.

Section 78(2). A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament or, as the case may be, before the State Legislature or the Union territory Legislature, where it consists of two Houses, or where such legislature consists of one House, before that House.

Information required in the annual report

1. Activities during the previous year

The report must describe the Authority's activities in the preceding year. Depending on the applicable reporting rules, this may include project and agent registration, complaint disposal, regulatory orders and compliance measures. These are examples of activities, not additional items expressly enumerated in Section 78.

2. Annual accounts

The report must include the previous year's annual accounts. Section 77 separately governs the Authority's budget, accounting records and audit by the Comptroller and Auditor-General of India. The two provisions should be read together, without treating the annual report requirement as a substitute for statutory audit.

3. Programme of work for the coming year

The Authority must also outline its proposed work for the next year. The form and timing of the annual report are governed by rules prescribed by the appropriate Government, so the applicable Central or State rules should be consulted.

Submission and legislative oversight

Under Section 78(2), the annual report is to be placed before the relevant Parliament, State Legislature or Union territory Legislature, as applicable. Where the legislature is bicameral, it must be laid before both Houses; where it is unicameral, before that House. The statutory direction is to do so as soon as may be after receipt of the report.

Related RERA provisions

Section 77: Budget, accounts and audit deals with accounts and auditing. Section 75: Constitution of Fund concerns the Authority's fund. Section 76 concerns sums realised as penalties.

Official legal resources

For the governing Act, rules and notifications, refer to India Code, the Ministry of Housing and Urban Affairs, and the relevant State or Union territory RERA authority website. Applicable local rules may prescribe additional details regarding annual reporting.

Frequently asked questions

Is the annual report mandatory?

Yes. Section 78(1) requires the Authority to prepare a report once every year.

Who determines the format and deadline?

The appropriate Government prescribes the form and timing under the applicable rules.

Must the annual report be presented to the legislature?

Yes. Section 78(2) requires the report to be laid before the relevant legislature.