Karnataka Real Estate Regulatory Authority (RERA) has decided to conduct the forensic audit of the accounts of Mantri Technology Constellation Pvt Ltd, a subsidiary of the leading realtor Mantri Developer Pvt Ltd. A private company has been appointed to conduct the audit. The Manyata Energy project at Rachenahalli in KR Puram, the projected cost would be Rs.475.92 crores. According to the RERA, the company collected Rs. 75.17 crore from buyers, but the key details of the project were not disclosed.
The company went on record saying 60 percent of the apartments have been sold, yet only 3 percent of the work has been completed. In this backdrop, some have approached RERA to investigate the misuse of the funds collected for this project. Karnataka RERA has issued an interim order appointing JAA and Associates for conducting the forensic audit on the condition that the complainants bear the cost of auditing. However, RERA did not explain why the complainants should bear the cost of the audit. In fact, as per Section 75(2)(b) of the RERA Act, RERA has to spend its own internal funds to carry out its functions. But it clarified that the cost of audit in this matter should be borne by the complainants.
