1. Fund diversion: Big setback for 8 builders, YEIDA issues notices – Check list of realtors here

Fund diversion: Big setback for 8 builders, YEIDA issues notices – Check list of realtors here

The Yamuna Expressway Industrial Development Authority (YEIDA) has issued notices to eight builders for allegedly diverting (Rs 840 crore meant for completing construction of flats.

By: | New Delhi | Published: February 15, 2018 5:25 AM
Fund diversion, YEIDA, noida, uttar pradesh, yogi adityanath, cm yogi adityanath Earlier this week, the Noida Authority had issued notices to 11 builders.

The Yamuna Expressway Industrial Development Authority (YEIDA) has issued notices to eight builders for allegedly diverting (Rs 840 crore meant for completing construction of flats.

“These eight builders are Logix Buildstate (Rs 37.84 crore), Greenbay Infrastructure (Rs 173.10 crore), Oasis Realtech (Rs 8 crore), Sunworld City (Rs 27.55 crore), SDS Infracon ((Rs 182.44 crore), Three C Homes (Rs 27.93 crore), Supertech Township Projects (Rs 262.82 crore) and ATS Realty (Rs 120.75 crore),” a senior official in YEIDA said.

YEIDA has directed the eight builders to open escrow accounts and deposit the allegedly diverted money within a month, failing which it has threatened to file police complaints against them. “Action will be taken in the interest of homebuyers. These builders were to hand over about 8,000 housing units, including flats and plots, to the buyers,” the official said.

In September last year, Uttar Pradesh chief minister Yogi Adityanath had directed the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities to audit accounts of developers who had delayed delivery of flats to homebuyers. The chief minister had also promised stringent action against builders who fail to deliver the flats on time. Action would be taken after the completion of the physical and financial audit being done in the three areas, he had said.

In November, YEIDA had formed a five-member committee headed by additional CEO Amarnath Upadhyay to audit account of 28 builders. The committee’s findings are based on details such as money collected for a housing project from buyers, banks and other institutions, money spent on land or construction and how much cash was used to finish a project by the respective builders.

Earlier this week, the Noida Authority had issued notices to 11 builders and their projects as a report by international consultancy firm Currie & Brown had alleged that they were diverting money collected from homebuyers for other purposes. The Noida authority had given them seven days to provide a clarification.

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  1. Sastry Vemoory
    Feb 15, 2018 at 9:46 am
    Why has the matter not been dealt with by the Regulator in respect of Home-building? As per the relative act the money collected as Advances from Homeowners should be deposited in an Escrow A/c and utilised exclusively for the Home building. There was obviously contravention of this provision. JP Group’s diversion of funds from Advances of Homeowners and the same is being dealt with by the Supreme Court.
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