Updated 27 October 2026. We read the K-RERA circular and the published summary of Karnataka's RERA Bank Account Directions. Most guides on Form-7 are written for promoters and their auditors; this one explains what the filing means for a buyer's money.

What is the RERA 70% rule?

Section 4(2)(l)(D) of the RERA Act, 2016 requires a promoter to deposit 70% of the amounts realised from buyers for a project in a separate account with a scheduled bank, to be used only for the cost of construction and land of that project. Withdrawals must be in proportion to the percentage of completion, certified by an engineer, an architect and a chartered accountant in practice.

Karnataka's RERA Bank Account Directions, 2020 apply this as follows: 70% of collections from allottees, excluding pass-through charges and indirect taxes, goes into the RERA account; where the project's estimated cost exceeds its estimated sales revenue, the figure is 100% (Karnataka RERA circular RERA/Finance-Section/BAD/02/2020-21, 7 January 2020, as published by IBC Laws).

Who certifies withdrawals from the project account?

Source: Karnataka RERA Bank Account Directions, 2020, clauses 6(ii) and 7(ii), as published by IBC Laws. The summary notes that clause 2(vii) attributes Form 7 to a chartered accountant, which reads differently from clause 7(ii).

  • Form 4: a chartered accountant in practice, who must not be the promoter's statutory auditor, certifies the construction and land cost incurred and paid, and its proportion to the total project cost.
  • Form 5: the architect certifies the percentage of completion of each task or activity in each building or wing.
  • Form 6: the engineer certifies the actual construction cost incurred for each building or wing.
  • Form 7: the annual audit of fund utilisation and withdrawals, by the promoter's statutory auditors, within six months of the year end.

Form-7 deadline for 2025-26 and the penalty

  • Financial year covered: ending 31 March 2026 (K-RERA circular, 19 June 2026).
  • The Act's audit window: within six months of the year end (RERA Act, s.4(2)(l)(D), third proviso), which is 30 September 2026 for this year, our arithmetic.
  • K-RERA filing deadline for Form-7 and audited books: on or before 15 November 2026 (K-RERA circular).
  • Where it is filed: a separate online module, via the 'Annual Audit' login under Registration on the K-RERA portal (K-RERA circular).
  • Penalty: failure to file in time may attract a penalty under Section 60 of the Act (K-RERA circular). The circular does not fix an amount.

Can a buyer see a project's Form-7?

Usually, yes. PropNewz, a property-guides site, says the Annual Audit Report tab on a project's K-RERA page lists every Form-7 filing year by year, with the PDF downloadable (PropNewz, updated 26 August 2026); we have not checked this for every project. If the tab is not visible, ask the promoter for a copy of the latest Form-7 or at least the acknowledgement of filing. A promoter confident in its accounts should not find that request unusual.

What a buyer should look for

  • Is the filing on time? A Form-7 for 2025-26 filed by 15 November 2026 is the baseline.
  • Is the report qualified? Auditors write qualifications when something does not reconcile. PropNewz's buyer walkthrough flags, among others: deposits below the 70% threshold, missing engineer or architect certificates for withdrawals, project funds used for non-project purposes, incomplete books, and an auditor unable to verify construction progress (PropNewz, updated 26 August 2026). Treat these as commentary, not rules.
  • Do the numbers line up with the quarterly reports? Withdrawals should track completion. If the quarterly reports show slow progress but the accounts show large withdrawals, ask why. Our guide to the quarterly reports: K-RERA Quarterly Progress Report: Check Construction, Oct 2026
  • Is it one project per filing? The Directions treat the account and audit as project-specific, so a group-level statement is not a substitute.

How to protect your own payments

The Directions require the details of the project-specific bank account to be submitted with the project registration application (clause 4(i), as published by IBC Laws). They do not, in the summary we read, oblige the promoter to print the account in the allotment letter. Practical steps, our guidance:

  • Ask the promoter, in writing, which account your instalments go to, and whether it is the account declared to K-RERA for this registration number.
  • Pay by cheque or bank transfer to the account named in the demand letter. Avoid cash and avoid payments to group or associate companies unless the agreement says so.
  • Keep every receipt and bank statement line; match them against the demand letters and the construction stage.
  • Before a large instalment, check the latest quarterly update and, after 15 November, whether the 2025-26 Form-7 has been filed.

Why this matters more this year

K-RERA has tightened its compliance calendar in 2026: a ₹25,000-per-quarter penalty for late quarterly updates from 2026-27 (K-RERA circular, 2 July 2026), a four-month force majeure extension for projects due on or after 28 February 2026 (K-RERA order, 10 August 2026), and a standard procedure for enforcing its orders (K-RERA circular, 28 July 2026). A clean, on-time Form-7 is one of the few documents that speaks to how a project's money has been handled, not just its construction.