Developers diverting funds on radar, says UPRERA

LUCKNOW: The UP Real Estate Regulatory Authority (UPRERA) will act tough against developers who divert funds earmarked for a project to another.

Diversion of funds from two projects has been the main reason behind the regulatory authority’s decision to cancel registration of two projects of Ansal API. Recently, UPRERA cancelled registration of Ansal API, Pocket-2, sector-P, Sushant Golf City, and Ansal API, Pocket-2, Sector-J, Sushant Golf City under section 7 of the RERA Act.

Diversion of funds came to light after auditor Currie and Brown audited three projects of the Ansal API. The auditor’s report pointed out financial irregularities.

“Deregistration order was served based upon the information collected, site inspections made, complaints registered in UPRERA and non-compliance of the provision of RERA Act,” said Rajive Kumar, UP RERA chairman. “The RERA has found that in these projects there have been severe financial irregularities, diversion and siphoning of funds amounting to Rs 606 crore which was diverted from the project for other purposes,” said UPRERA chief. The UP Oppressed Home Buyers Association will also take up the issue of diversion of funds by developers. “Developers collect fund from homebuyers and then misuse it. It is homebuyers’ money and developers should be made accountable for it,” said Alok Singh, patron, UP Oppressed Home Buyers Association.

However, there is also good news for homebuyers. The UP RERA’s intervention has helped promoter Jaiprakash Associates Limited to revive its pending Jaypee Greens Knight Court project in Noida.