Importance of Proper Disclosure and Certification of Report on Means of Finance (RMoF) for Project Execution and Completion - Instructions to Promoters and Chartered Accountants-Reg

GOVERNMENT OF TELANGANA
TELANGANA REAL ESTATE REGULATORY AUTHORITY
HYDERABAD
Circular No: 3806/ TG RERA/2025.

Date:22/10/2025

Subject: Importance of Proper Disclosure and Certification of Report on Means of
Finance (RMoF) for Project Execution and Completion - Instructions to
Promoters and Chartered Accountants-Reg

1. Background
The Authority has observed that in several ongoing and registered
projects, delays in project execution and delivery are primarily attributable to
liquidity crunch, improper financial planning, and absence of contingency
strategies by promoters. Hence, a well-prepared RMoF is critical to ensure
uninterrupted construction and timely completion of the real estate project.
In exercise of the powers conferred under Section 37 of the Real Estate
(Regulation and Development) Act, 2016 read with Rule 14 of the Telangana Real
Estate (Regulation and Development) Rules, 2017, the Authority has decided to
issue Circular to emphasize the importance of proper assessment, declaration, and
certification of the Means of Finance (RMoF) at the time of registration and during
project monitoring.

2. Importance of RMoF in Project Execution
The Report on Means of Finance (RMoF) is a key disclosure document
forming the financial foundation of the project and must demonstrate a realistic
and sustainable financial plan. The RMoF ensures that the promoter has adequate
liquidity and a clear financing roadmap to honour commitments made to allottees
and statutory authorities.
In view of the above, the Authority instruct all the Developers/Promoters to submit
certificate on Means of Finance as per revised Form 3 at the time of registration of
the Project duly certified by the Chartered Accountant in practise.
It should consist of:
(a) Estimated Cash Outflows


Land Cost payments shall correspond to the terms of
Development Agreement / Sale Deed.

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Development Cost estimation shall be based on construction
schedule, bill of quantities, and resource planning for each
block and phase.



Interest and Borrowed Fund Repayments must be aligned with
the approved borrowing plan and institutional loan
agreements.



Other Costs, such as marketing,
advertisement expenditure.

administrative,

and

(b) Estimated Cash Inflows


Promoter’s Capital Contribution shall be supported by financial
capacity documents such as IT returns, Reserves & surplus,
and Bankable assets.



Receipts from Allottees shall be based on a realistic quarterly
marketing and sales plan consistent with project construction
stages.



Institutional Loans shall be disclosed with sanctioned
amounts, repayment terms, and collateral details, duly verified
by the Chartered Accountant.



Other Borrowings, including unsecured loans from friends,
relatives, or group entities, must be supported with past
financial records and repayment timelines.

(c). Ensuring Liquidity and Financial Discipline


The Means of Finance Plan shall remain cash-positive for every
quarter throughout the project period to avoid disruption in
construction.



The Authority directs all promoters and CAs to prepare the
RMoF with adequate contingency and liquidity buffer,
considering statutory payments, land dues, and construction
obligations.



Therefore, submission of a comprehensive RMoF is not only a
regulatory requirement under Section 4(2)(l)(D) of the Act but
also a risk-mitigation mechanism for ensuring smooth
execution and delivery by the project end date.

(d). Legal Basis and Compliance Requirement


As per Section 4(2)(l)(D) of the RE(R&D) Act 2016, every
promoter shall provide an estimate of project costs, including
land, construction, and other related expenses, duly certified
by a Chartered Accountant.

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Under Section 11(1)(b) and (c) of RE(R&D) Act 2016, the
promoter is responsible for ensuring that project funds are
utilized only for the purpose for which they are raised and that
project progress is commensurate with financial inflows.



The Authority, under Section 34(f), is mandated to ensure that
promoters adhere to approved plans and timelines by
maintaining proper financial discipline.



Any misrepresentation or incorrect certification in RMoF or
Form-3 shall be liable for action under Section 61 and 63 of
the, RE(R&D) Act 2016.

3. Directions to Promoters and Chartered Accountants


All new applications for project registration must include a
properly structured Means of Finance (RMoF) certified by a
Chartered Accountant in practise as per revised Form 3.



For ongoing and registered projects, promoters shall review
their existing RMoF and ensure alignment with actual financial
progress and update the same as per the revised Form 3 every
Quarter as per the Section 11 of RE (R&D) Act,2016.



The Chartered Accountants certifying RMoF must exercise due
diligence and ensure compliance with the ICAI Guidance Note
on Real Estate Transactions and TG RERA Circulars issued
from time to time.

4. Conclusion
The Authority reiterates that a realistic and compliant Means of Finance is a
cornerstone for project success and a safeguard for allottees. Promoters are
therefore advised to plan their financial resources judiciously and ensure timely
infusion of capital to meet their obligations in a time-bound manner and
mandatorily submit the Report of Means of finance (RMoF) as per Revised Form 3
at the time of registration of the Project along with QPR’s.
This Circular shall have immediate effect.
(By orders of the Authority)
Sd/Secretary,
TG RERA

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Sub: Certificate of Financial progress of work of <project Name> having TG RERA
Registration number_______________ being developed by <Promoter Name>.

Sir,
This certificate is being issued for RERA compliance for the <Project Name>
having TG RERA Registration ________ being developed by <Promoter Name> and is
based on the records and documents produced before me and explanations
provided to me by the management of the company; based on the verification of
books of accounts for the Quarter ended_________.

Table A- Estimated Cost of the Project (at the time of Registration of Project)
SL.NO

Particulars

Amount (In Rs)
Estimated
(Column-A)

1

(I)

Land Cost:

a.

Cost of Land or Development Rights,
lease Premium, least rent, interest cost
incurred or payable on Land Cost and
legal cost.

Incurred
(Column-B)

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Amount of Premium payable to obtain
development rights, FSI, additional FSI,
and any other incentive under DR from
Local Authority or State Government or
any Statutory Authority.

c

Acquisition cost of TDR (if any)

d

Amounts payable to State Government
or competent authority or any other
statutory authority of the State or
Central Government towards stamp
duty, transfer charges, registration fees
etc. and

e

Land Premium payable as per annual
statement
of
rates
(ASR)
for
developmental of land owned by Public
Authorities.

f

Under Redevelopment/Rehabilitation
Scheme:

(i)

Estimated
construction
cost
of
redeveloped/rehab building including
site development and infrastructure for
the same as certified by Engineer
(Column-A)
Actual
Cost
of
construction
of
redeveloped /rehab building incurred as
per the books of accounts as verified by
the CA (Column-B)
(For total cost of construction incurred,
Minimum of (i) or (ii) is to be
considered)

(ii)

Note

(iii)

(iv)

(II)

Cost towards clearance of land of all or
any encumbrances including cost of
removal of legal/illegal occupants, cost
for
providing
temporary
transit
accommodation or rent in lieu of Transit
Accommodation, overhead cost.
Fees, charges and security deposits or
maintenance deposits, or any amount
whatsoever payable to any authorities
towards and in project of rehabilitation.
Sub -Total of LAND COST
Development Cost/Cost of
Construction:

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(i)

Estimated Cost of Construction
as Certified by Engineer
(Column-A)

(ii)

(III)

b

c

Actual Cost of Construction
incurred and paid as per
the books
of
accounts
as verified by the CA
(Column- B)
Note: (for adding to total cost of
construction incurred, Minimum of
(i) or (ii) is to be considered)
On-site expenditure for development of
entire project excluding cost of
construction as per (i) or (ii) above, i.e.,
salaries,
consultants’
fees,
site
overheads, development works, cost of
services (including water, electricity,
sewerage, drainage, layout roads etc.),
cost
of
machineries
and
e q u i p m e n t including i t s h i r e
and
maintenance
costs,
consumable etc. All costs directly
incurred to complete the construction of
the entire phase of the project
registered.
Payment of Taxes, cess, fees, charges,
premiums, interest etc. to any Statutory
Authority.
Interest payable to financial institutions,
scheduled banks, non- banking financial
institution on construction funding or
money borrowed for construction.
Sub- Total of = Development Cost

Total Estimated Cost of the Real Estate
Project (1(I) + 1(II) of Estimated Column
-A
Total Cost incurred and Paid of the Real
Estate Project (1(I) + 1 (II) of incurred
and Paid Column – B
Percentage
of
completion
of
Construction Work.
(as per Project Architect’s Certificate on
completion of project)
%
Proportion of the Cost incurred and
paid on Land Cost and Construction
Cost to the Total Estimated Cost
(Sl.No.3/2 %

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Table B: Statement for calculation of Receivables from the Sales of the Ongoing
Real Estate Project
(A) Booked Inventory
Sl.

Block/Type/

No.

Bungalow/
Category
(as per
Form 1)

Flat/Bunga
low/
Office/
Plot
No.(s)

Built up
Area (in
Sq. Mts

Unit amount

Received

Consideration

amount

as per
agreement (as
per Clause
1(b) of the
Model
Form of
Agreement to
be entered
between
Promoter and
Allottee(s)

Balance
Amount

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Block/Type (as per

Flat/Office/

Form 1)

Plot
No.(s)

Built up
Area

Estimated
Amount of

(in Sq. Mts)

Sale
Proceeds

Total Proposed

Total Booked

No. of Covered Parking
No. of open parking

Table C: Details of RERA Bank Accounts:
Particulars
Account No
Bank IFSC Code
Bank Name
Opening Balance
as on __/__/20__
Deposits during
the
period__/__/20__
to __/__/20__
Withdrawals
during the
period__/__/20__ to __/__/20__
Closing Balance
as on __/__/20__

Collection Account
of the Project

Separate
Account of the
Project

Transaction Account
of the Project

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Table D: Means of Finance
S.No

1
2

3

4

Particulars

Estimated
(At time of
Registration)
(In Rs)
(Proposed and
indicative)

Proposed/Estimated
(As on the date of
the certificate) (In
Rs.)

Actual
(As on the date
of Certificate)
(In Rs.)

Own Funds
Total Borrowed Funds
(Secured)
- Drawdown availed
till date
Total Borrowed Funds
(Unsecured)
- Drawdown availed
till date
Customer Receipts used for
project

5
6

Total funds for project
Total estimated cost as per
Table A

Yours faithfully,

Name and Signature of Chartered Accountant with Stamp.
For (Name of CA Firm)
Partner/Proprietor
(Membership Number)
UDIN:

Sd/Secretary
TG RERA

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2

Estimated Balance Cost to complete the
Real Estate Project (Difference of Total
Estimated Project cost less Cost incurred)
Balance amount of receivables from booked
apartments as per T a b l e B to this Certificate
(as certified by Chartered Accountant as
verified from the records and books of
Accounts)

3 (i)

Balance Unbooked area (to be certified by
Management and to be verified by CA from
the records and books of accounts)

3 (ii)

Estimated amount of sales proceeds in
respect of unbooked Units as per Table B to
this certificate.

4

5

Estimated receivables of the project. Sum
of 2+3 (ii)
Amount to be deposited in Designated
Account – 70% or 100%
If 4 is greater than 1, then 70% of the
balance receivables of the project will be
deposited in designated Account.
If 4 is lesser than 1, then 100% of the
balance receivables of ongoing project will
be deposited in designated Account.

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