‘8 builders diverted ₹860 crore of flatbuyers’ money’

GREATER NOIDA: The Yamuna Expressway Industrial Development Authority (YEIDA) has claimed that eight real estate developers have allegedly diverted funds worth ₹860 crore collected from homebuyers, a contention that is denied by most of the developers involved.

Following the instructions of Uttar Pradesh chief minister Yogi Adityanath, YEIDA chief executive officer Arun Vir Singh formed a committee headed by additional chief executive officer (ACEO) Amarnath Upadhyay to audit accounts of 28 real estate developers.

The committee, which has submitted its report to the CEO, said Sunworld Infrastructure Limited, Oasis Realtech Private Limited, Supertech Group, Logix Group, Three C Developers, SDS Infracon Private Limited, Green Bay Infrastructure Private Limited and ATS Realty Private Limited had diverted funds. The other 20 developers are in the clear although the committee says some of them owe YEIDA money.

“We have issued notices to these eight builders and directed them to open escrow accounts for their respective housing projects and deposit the diverted amount in the next 30 days or be ready to face criminal cases. The authority will file an FIR against each and send them to jail if needed,” said YEIDA CEO Singh.

Sunworld Infrastructure Limited is accused of diverting ₹47.55 crore, Oasis Realtech Private Limited ₹8 crore, Supertech Group ₹262.82 crore, Logix Group ₹37.84 crore, Three C Developers ₹27.93 crore, SDS Infracon Private Limited ₹182.44 crore, Green Bay Infrastructure Private Limited ₹173.10 crore and ATS Realty Private Limited ₹120.75 crore, according to YEIDA officials.

Five of eight developers termed the “audit methodology” followed by the authority as “faulty”. The audit covered the 28 builders to which YEIDA had alloted land in 2010-11. Some of these builders have partially delivered their projects, but the majority of them are yet to deliver as the construction work is underway.

Getambar Anand, chairman and managing director, ATS Builders and president of confederation of real estate developers association of India (CREDAI), a realtors’ body, said: “The work at our project is being finished as per schedule and we have not at all diverted any money of buyer. The audit report is one-sided and discouraging for the builders like us, who are delivering each project on time.”

RK Arora, chairman and managing director of the Supertech Group, said: “Our team had explained to the committee that we have not diverted any money. We had taken a loan to finish the housing project on time and then paid interest on the loan amount back to the lender. The committee considered that repayment of interest as diversion. I am shocked.”