Gr Noida authority to look into financial status of Amrapali Group

The RERA Act was constituted to bring clarity and fair practices to protect the rights of buyers and to impose penalties on builders at fault.

Noida principal secretary (housing and urban planning) Mukul Singhal has ordered an inquiry into the financial details of Amrapali group.

Noida authority in a meeting last week with senior officials of the state had called for action against Amrapali group under RERA Act.

The Real Estate Regulatory Authority had earlier asked the CEO of Greater Noida authority to undertake an inquiry into the financial matters of the group.

Noida authority in a meeting last week with senior officials of the state had called for action against Amrapali group under RERA Act.

“We have asked the Greater Noida authority to do an official inquiry into the financial status of Amrapali group. The government is very clear that every possible measure will be taken to solve the issues of distressed buyers. The inquiry was ordered four days back,” said Mukul Singhal.

CEO Noida Authority, Amit Mohan Prasad, said that they were trying every possible method to come to the aid of distressed homebuyers.

“We have asked the principal secretaries of industries and housing to book Amrapali group under RERA act. Principal secretary (housing) is the person who can decide on RERA Act,” said Amit Mohan Prasad.

The RERA Act was constituted to bring clarity and fair practices to protect the rights of buyers and to impose penalties on builders at fault. Each state and Union Territory will have its own regulator and set of rules to govern the functioning of the regulator, according to RERA.

“The authorities have been asked to use every possible law and provisions to ensure benefit of buyers,” added Singhal.

The officials said that the authority is not convinced that Amrapali group was actually trying to arrange funds.

“There are projects which can be completed in few months time if the group wants to. The directors of Amrapali have been saying that they are arranging funds to start construction, but their acts suggest the otherwise,” added Prasad.

Uttar Pradesh chief minister Yogi Adityanath too has asked authorities to make sure that strict action is taken against builders who are cheating buyers.

“The state government has taken the issue of builders and buyers seriously. There are strict instructions from the CM to protect the interest of buyers. The recent meeting with the senior officials took place on the instructions of the CM only,” said Mohan.

Amrapali Group officials however said they had nothing to hide.

“We have already submitted all required details of our finances. We are aware about the RERA inquiry and there is nothing to hide from our side. They have already asked us everything and we have told them the reality,” said Shiv Priya, director, Amrapali.

The Amrapali Group had in 2009 launched Amrapali Dream Valley project with a total of 47 towers in Sector Tech Zone-4. Of 12,000 dwelling units, around 8,000 flats have already been sold but the builder has completed only 40% of the construction work.

Homebuyers have claimed that they have already paid almost 80% of the total flat cost, but the builder is yet to finish even 60% construction.