Delay in flat delivery: Not our job to audit builders’ accounts, says Noida authority | noida | Hindustan Times
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Delay in flat delivery: Not our job to audit builders’ accounts, says Noida authority

The authority had promised buyers that it will probe and ascertain whether the builders siphoned off funds mean for completing projects on time.

noida Updated: May 30, 2017 21:06 IST
Vinod Rajput
Although the authority promised during tripartite meetings to undertake such audits, it has not done so yet.
Although the authority promised during tripartite meetings to undertake such audits, it has not done so yet. (Salman Ali/HT Photo)

Auditing of builders’ accounts has for long been the refrain of Noida homebuyers who have been waiting endlessly for the flats they paid for. Although the authority promised during tripartite meetings to undertake such audits, it has not done so yet.

The authority had promised buyers that it will probe and ascertain whether the builders siphoned off funds mean for completing projects on time.

Now, the authority says it is not its job to do audits.

“How will the Noida authority audit the accounts of each builder? It is not our job. Let the homebuyers conduct the audit into accounts of their respective builder,” said Amit Mohan Prasad, chief executive officer of the Noida authority.

Officials said the authority does not have manpower or expertise to conduct an audit of each builders’ funds collected from homebuyers in the name of delivering flats.

Following instructions of Uttar Pradesh chief minister Yogi Adityanath, the authority since April 10 has been holding meetings of builders, homebuyers and officials to address issues faced by developers in finishing the projects.

The common demand from homebuyers has been that there should be an audit of builders’ accounts. The authority also assured them that such an audit will be done.

Until now, the authority has held meetings with developers and homebuyers of 22 projects, at the Indira Gandhi Kala Kendra in Sector 6.

“We demanded an audit into the builders’ accounts because most of the buyers have paid 95% of total flat cost to the builder. But the builder is yet to finish the project citing a financial crisis. If an audit of the accounts is done, we would know where our money went. If the authority had not put in place a team for doing the audit, then what is the purpose of these tripartite meetings?” said SK Nagrath, president, Jaypee Aman buyers’ association.

Homebuyers said around 100 builders collectively owe Rs 25,000 crore to the Noida authority in land dues.

“Seventy-five builders have failed to clear land dues to the Noida authority. They have also failed to finish the projects due to a fund crisis. It means they have diverted the buyers’ money to other businesses. There should be a detailed audit to ascertain how these builders failed to finish their respective projects. If they are guilty, then legal action should be taken against them,” said Rajesh Purohit, a buyer of a project in Sector 107.