Union Minister of State for Law & Justice and Corporate Affairs Shri P.P. Chaudhary said in Lok Sabha today that during the year 2017-18 and till 30.06.2018, the Ministry of Corporate Affairs has ordered inquiry in 87 companies, inspection of books and papers in 17 companies and investigation in 7 cases involving 149 entities including 5 Limited Liability Partnerships (LLPs) engaged in real estate activities. The Minister in his reply said that the Companies Act, 2013 (the Act) provides for details of compliances with respect to books of account and other matters to be made by companies of all categories and there are no separate provisions in the Act for real estate companies.

The Companies Act, 2013 stipulates requirement of statutory audit and internal audit by the companies.

Regulatory inquiry into real estate compliance leads to inspections and investigations under Companies Act audit requirements. The Ministry carried out inquiries, inspections of books and papers, and investigations into entities engaged in real estate, applying powers to examine corporate compliance across companies and certain LLPs; the Companies Act, 2013 governs the record keeping and compliance requirements for all companies and mandates statutory and internal audit, with no separate provisions specific to real estate firms.