1. Funds diversion: 11 Noida builders asked to clarify within a week

Funds diversion: 11 Noida builders asked to clarify within a week

The Noida Authority has issued notices to 11 builders and their projects after a report submitted by international consultancy firm Currie & Brown alleged that they had diverted the money collected from homebuyers for completing various projects.

By: | New Delhi | Published: February 13, 2018 5:44 AM
Unitech, Unitech Acacia Projects, Logix City Development, Three C Properties, Gardenia Aims Developers, Granite Gate Properties, Red Fort Jahangir, Omaxe Build Hom The decision to conduct audit came after homebuyers alleged that the builders have diverted funds collected from them into other projects. (Reuters)

The Noida Authority has issued notices to 11 builders and their projects after a report submitted by international consultancy firm Currie & Brown alleged that they had diverted the money collected from homebuyers for completing various projects.

“The audit was carried into accounts of 14 erring builders following which 11 were found suspicious and have been issued notices. The detailed analysis of the report submitted by the agency showed no misuse or diversion of funds collected by the homebuyers into other projects. However, the money collected from the homebuyers and the expense on the housing project showed variations,” Noida Authority chief executive officer Alok Tandon said.

The authority has given seven days to the builders to provide a clarification. According to officials, the builders who were issued notices include Unitech, Unitech Acacia Projects, Logix City Development, Three C Properties, Gardenia Aims Developers, Granite Gate Properties, Red Fort Jahangir, Omaxe Build Home and Pebbles Prolease.

The decision to conduct audit came after homebuyers alleged that the builders have diverted funds collected from them into other projects, thus failing to deliver the possession of their flats by the promised date. Following this, the authority had, on November 8 last year, hired Currie & Brown to audit accounts of the 51 defaulter builders who are facing charges of diversion of funds collected from various homebuyers.
In the first phase, the agency conducted audits of accounts of 14 builders having around 36,000 flats in their various housing projects. The audit of accounts of the remaining 37 builders will be done in the second phase.

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