Recovery notice against 2 builders for diverting funds
The Yeida had on June 27, 2018 filed two FIRs against the two builders in connection with the fund diversion.
The Yamuna Expressway industrial development authority (Yeida) on Tuesday said it has issued recovery notices (RC) against two realty firms, SDS Infracon Private Limited and Green Bay Infrastructure Private Limited, which are facing allegations of diversion of funds collected from home-buyers.
The Yeida had on June 27, 2018 filed two FIRs against the two builders in connection with the fund diversion. A committee of Yeida officials had established after probe that the two builders diverted the funds collected from home-buyers into other businesses, officials said. “Even after issuing repeated notices and filing of FIRs, the two builders did not turned up to clear dues. Therefore, we have issued recovery notices. Now, the Gautam Budh Nagar district magistrate will recover the dues,” Arun Vir Singh chief executive officer (CEO) of the Yeida, said.
The police had filed one FIR each for the two builders under sections 420, 409, 467, 468, 471 of the IPC and sections 74, 75 and 447 of the Company’s Act.
SDS Infracon Private Limited is accused of diverting ₹182.44 crore while Green Bay Infrastructure Private Limited allegedly diverted ₹173.10 crore collected from homebuyers.
Following instructions from Uttar Pradesh CM Yogi Adityanath on September 12, 2017, Singh had formed a committee headed by additional CEO of Yeida, Amarnath Upadhyay, to audit accounts of 28 builders to determine whether they diverted funds collected from buyers. The committee report said that eight out of 28 builders diverted funds. Later, the Yeida team established that these two builders diverted funds. “We had asked these two to open an escrow account and deposit diverted funds into them, which were to be managed by the authority and the builders. But they did not pay heed to out suggestions,” Singh said.
The authority had in 2010-11 allotted 124 acres of land to SDS Infracon Private Limited and around 100 acres to Green Bay Infrastructure Private Limited. The two developers had been developing residential plots and selling them to homebuyers. However, the two are yet to develop roads, parks and other common facilities in their respective projects, thereby troubling homebuyers. “We did not divert any fund collected from home-buyers. And we have explained it to the authority. We do not know why the authority is taking this action,” Davesh Chhokar, general manager, SDS Group, said.
Green Bay Infrastructure Private Limited was not available for comments.
