Builders diverted ₹1,000 crore of homebuyers’ money: Yamuna authority

An audit of builders’ accounts has been conducted by a committee of Yamuna Expressway Industrial Development Authority officials to establish if they misused funds collected from homebuyers.

The Yamuna Expressway Industrial Development Authority (YEIDA) on Tuesday said several builders diverted nearly Rs 1,000 crore collected from the homebuyers to other projects, delaying the delivery of flats.

Yamuna Expressway Industrial Development Authority (Yeida) says diversion of funds led to delay in delivery of flats. (Burhaan Kinu/HT PHOTO)

The fact has come out in an audit of builders accounts by a committee of YEIDA officials to establish if the builders misused the funds collected from homebuyers.

The YEIDA formed the five-member committee, headed by additional chief executive officer Amarnath Upadhyay, last November to audit builders’ accounts. On September 12, UP Chief Minister Yogi Adityanath had directed the CEOs of Noida, Greater Noida and Yamuna Expressway authorities to audit accounts of the builders who have failed to deliver flats.

The International agency — Currie & Brown — is auditing the accounts in Noida and Greater Noida.

YEIDA CEO has submitted its report to the chief executive officer Arun Vir Singh, who will study it and send it authority chairman, Dr Prabhat Kumar.

“We will go through the report and take action against the builders. The audit has established that many builders have diverted the funds to other businesses. All builders together have diverted around Rs 1,000 crore, which were collected from buyers to develop the housing projects,” said Dr Kumar.

The committee had to audit the accounts of 28 builders, of which five realtors did not provided the required details to the committee.

“Of the 23 builders, four to five have diverted funds to other projects. We gave adequate time to each builder to supply evidence to prove that they have not spent the money on other projects. We called them, sent emails, faxed and gave written notices to give them an opportunity to defend themselves. Now, it is time to act against the builders, who diverted the funds and also did not cooperate in the audit,” said a YEIDA official, who is a part of the committee.

YEIDA had allotted land to these 28 builders in 2009-10. They were supposed to finish the projects by 2013-14. However, citing dip in sales amid slowdown, these builders are yet to finish their projects located along the 165-km Yamuna Expressway that connects Greater Noida with Agra.

Around 16,000 homebuyers and investors have bought flats in these 28 housing projects, said officials.