HP RERA CAG inspection report flags financial irregularities in audit covering 2019–2025
Shimla, March 24,
CAG inspection report on HP RERA (2019–2025) flags financial irregularities, idle funds and compliance lapses in authority functioning.
A Comptroller and Auditor General (CAG) inspection report relating to the Himachal Pradesh Real Estate Regulatory Authority (HP RERA), covering the period from December 2019 to May 2025, has flagged multiple financial and procedural lapses within the authority, as per documents accessed through official records.
The inspection report notes that penalty amounts exceeding Rs 1.56 crore were lying in bank accounts instead of being dealt with in accordance with prescribed norms. It also records irregular retention of funds amounting to over Rs 1.12 crore, indicating deviations from established financial procedures.
According to the audit observations, there were gaps in financial documentation, including instances where utilisation certificates were not available on record. The report further records cash payments exceeding Rs 4 lakh, despite existing provisions that encourage or mandate digital transactions in official expenditure.
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The inspection findings also indicate that annual accounts had not been prepared for the period under review, and that the designated RERA fund had not been constituted in line with statutory provisions.
In addition, the report points to inventory management issues, noting that materials valued at approximately Rs 3.76 lakh were not reflected in stock registers. It also highlights instances of unadjusted or unrecovered amounts, including those linked to vehicle-related expenditure, along with discrepancies in fuel usage records and house rent allowance payments.
Administrative aspects have also been flagged, with the report observing that key positions have remained vacant since 2019, which may have implications for the authority’s operational capacity.
Noteworthy that the observations form part of an inspection report issued to the authority for its response, as per the standard audit process. Final conclusions, if any, would depend on further examination and any replies submitted by the concerned authority.
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