11 NOIDA BUILDERS ISSUED NOTICES
The Noida authority has issued notices to 11 builders who could not complete their projects on time and sought their explanations on the gap between income and expenditure.
NOIDA : The Noida authority on Sunday said that it has issued notices to 11 builders, directing them to explain gaps in funds collected from homebuyers and expenditure on construction.
The notices were issued after an international agency, Currie & Brown, audited the accounts of the builders, who have failed to finish the housing projects as per schedule, delaying delivery of flats to the homebuyers. The agency started the audit of 14 builders on November 8, 2017. These builders have failed to deliver 36,000 flats.
“Today, we discussed the audit report in our meeting and observed that there is a gap in income (funds from buyers) and project expenditure. We have directed the builders to explain this gap in cash flow. We have given these builders seven days time to explain where they have spent the money collected from the buyers,” said Alok Tandon, chief executive officer of the Noida authority, who studied the audit report.
Ninety-four housing projects have been stuck in Noida in which around 78,000 homebuyers have invested money and are now facing problems because the builders have not finished construction, said officials. The homebuyers had been demanding an audit of builders’ accounts to find out if they have diverted the money meant for construction to other businesses.
On September 12, Uttar Pradesh Chief Minister Yogi Adityanath had directed the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities to audit the accounts of the builders who have failed to deliver flats. The homebuyers had alleged that the builders could not hand over flats to them because funds collected for flats were diverted to other projects. Officials of the Noida authority, however, are not sure if the funds are diverted or not.
“We cannot say there is a diversion of funds in these 11 projects until the explanation from builders is provided for the gap in cash flow. We have also asked the builders to submit plans for delivering flats,” said Tandon.
In the first phase, the agency has audited 14 builders that include Sikka Infrastructure Private Limited, Unitech Limited, Unitech Acacia Projects Private Limited, Aims Max Gardenia Developers Private Limited, Granite Gate Developers Private Limited, Omaxe Build Home Private Limited, Pebbles Prolease Private Limited, Logix City Developers Private Limited, Gardenia Aims Developers Private Limited, Supertech Limited, Three C Projects Private Limited, Red Fort Jahangir Properties Private Limited, Logix Infratech Private Limited and one more project of Unitech Limited.
Sikka Infrastructure Private Limited, Aims Max Gardenia in sector 75 and Supertech Limited housing projects do not have any gaps in the funds received from buyers and the expenditure. The authority has already asked Currie & Brown to audit the accounts of 37 more builders.
“Let the Noida authority and the Currie & Brown agency first decide if there is diversion of funds or not. Our objective will be to ensure that all housing projects get delivered without further delay. We want that homebuyers do not suffer at all because it will impact the entire real estate sector. We are persuading builders to finish their projects at the earliest,” said Subodh Goyal, chairman of legal department and treasurer of Confederation of real estate developers association of India.