HP RERA Audit Expenditure draws attention amid austerity and audit observations
Shimla, March 27,
At a time when the Himachal Pradesh government is implementing fiscal tightening and austerity measures, expenditure by the Himachal Pradesh Real Estate Regulatory Authority (HP RERA) towards an external regulatory forum has drawn attention, particularly in the context of earlier audit observations on the authority’s financial and administrative functioning.
Documents accessed under the Right to Information (RTI) Act show that HP RERA has made recurring payments ranging between Rs 1.18 lakh and Rs 2.36 lakh annually towards membership or subscription to the All India Forum of Real Estate Regulatory Authorities (AIFORERA). The records also indicate official travel undertaken by senior functionaries, including at the chairperson level, to attend meetings of the same forum, with expenditure on air travel, accommodation and related allowances.
While the quantum of expenditure may not be substantial in absolute terms, the issue gains relevance as it pertains to spending that may fall outside the defined statutory or financial framework. The nature of such recurring expenditure, and the process through which it is approved, assumes significance in light of the broader fiscal environment as well as the authority’s financial framework.
One of the key questions that arises is whether such payments and related expenditure were allowed with due sanction from the competent authority, and whether they fall within the scope of approved financial powers and statutory functions.
Also read:HP RERA CAG inspection report flags financial irregularities in audit covering 2019–2025
A Comptroller and Auditor General (CAG) inspection report, covering the period from December 2019 to May 2025, had earlier pointed to multiple financial and procedural gaps within HP RERA. The report noted that penalty funds exceeding Rs 1.56 crore were lying in bank accounts, while over Rs 1.12 crore was retained irregularly, along with issues in documentation, non-preparation of annual accounts and key posts remaining vacant since 2019.
While participation in inter-state regulatory forums may form part of institutional coordination, the statutory framework under the Real Estate (Regulation and Development) Act, 2016 outlines the functions of the Authority, including promoting transparency and advising government. However, the Act does not explicitly provide for recurring institutional memberships, placing emphasis on the need for appropriate approvals and financial discipline in such expenditure.
Separately, a Finance Department Office Memorandum dated September 5, 2025, underscores the state’s emphasis on fiscal discipline, including stricter norms governing administrative and financial decisions across departments.
The contrast between the state’s austerity measures, audit observations highlighting systemic gaps, and RTI records showcasing ongoing expenditure has brought attention to the need for more clarity on approval mechanisms, expenditure justification and adherence to governing norms.
The observations in the CAG inspection report form part of an audit process issued to the authority for response, and any final conclusions would depend on further examination and replies submitted by the concerned authority.
HimachalScape has reached out to HP RERA for a response. The same will be updated upon receipt.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.