The UP Real Estate Regulatory Authority (UP Rera) has frozen the bank accounts of Unnati Fortune Holdings Private Limited, a Noida realty project deregistered by it last Friday, after it found serious financial irregularities, diversion and siphoning off funds and cases of double allotment.
Informing the banks about the authority’s decision, UP Rera secretary Abrar Ahmed has asked the banks to freeze all accounts of the defaulting builder with immediate effect. “Please freeze accounts of Unnati Fortune Holdings Pvt Limited (Aranya Phase 3,4 and 5) with your banks and inform us at the earliest about the action taken,” said Ahmed in a letter to the banks.
A copy of the letter has also been sent to principal secretaries of UP Housing, Town and Country Planning Department and Industrial Development Department. The action follows UP Rera ’s May 23 decision to deregister the realtor, denying access to him on Rera website and blacklisting him as a defaulter.
In all nine bank accounts of the erring developer with Noida branches of HDFC, Axix Bank, PNB, Corporation Bank and ICICI have been frozen. Six more projects were under scrutiny, officials said.
The project located at Sector 119 at Noida is said to be valued at over ₹1,500 crore and work on it commenced in 2007. The inspection team of the authority had inspected the site and found that out of eight towers four were yet to be constructed and only four were in completion stage. Construction of villas too had not begun, said the release.
{{/usCountry}}The project located at Sector 119 at Noida is said to be valued at over ₹1,500 crore and work on it commenced in 2007. The inspection team of the authority had inspected the site and found that out of eight towers four were yet to be constructed and only four were in completion stage. Construction of villas too had not begun, said the release.
{{/usCountry}}Earlier, the authority had issued deregistration notices under Section 7 of the Rera Act to seven builders for failing to meet their commitments to buyers invested in 14 projects and approximately 4800 residential units.
In April, UP Rera had written a letter to DG Institutional Finance and zonal heads of all banks informing them about section-4(2)(I)(D) which made it mandatory upon a developer to deposit 70 per cent of the amounts realized for the real estate project from the allottees, in a separate escrow account with a scheduled bank. The letter had pointed out that it was obligatory upon both the developer and the banks to ensure strict compliance of Rera Act on withdrawals and deposits.