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Audit of realtors: Noida Authority finds two builders diverting cash collected from homebuyers

In another round of audit of 15 builders, the Noida Authority has found that two developers have diverted money collected from home-buyers, a senior official with the authority said.

homebuyers, construction sector, construction industry, noida
. The audit of accounts of the remaining 37 builders is be done in the second phase.

In another round of audit of 15 builders, the Noida Authority has found that two developers have diverted money collected from home-buyers, a senior official with the authority said. On Monday, the international consultancy firm, Currie & Brown, submitted a report of 15 builders out of the 37 builders in the second phase of audit.

In the first phase, the agency had conducted audits of accounts of 14 erring builders, having around 36,000 flats in their various housing projects, of which 11 were found suspicious and were sent notices. The audit of accounts of the remaining 37 builders is be done in the second phase.

“The agency will finish the audit of the remaining 22 builders in the next two weeks. Thirteen of 15 builders have not diverted any funds collected from buyers,” the official said, however, he did not give names of the two builders. “We can tell you the names (of the developer) once the final report of all the 37 builders comes,” he said.

According to the audit report, there are some gaps in the funds collected and spent by two builders and the authority will ask the builders for an explanation in this regard, he said. There are a total of 94 stuck housing projects in Noida in which around 78,000 home buyers have invested their money. The Noida authority is also struggling to recover around Rs 11,000 crore from these 94 defaulters. “We have to ensure that all builders finish housing projects and deliver flats to home buyers,” he said.

decision to conduct audits came after home buyers 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 home buyers.

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First published on: 21-03-2018 at 05:24 IST
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