CM Yogi orders audit of accounts of all builders who failed to deliver flats in Noida

Homebuyers in Noida and Greater Noida, for a long time, have been demanding forensic audit of each errant builder’s accounts.

Uttar Pradesh chief minister Yogi Adityanath on Tuesday ordered an audit of financial accounts of all errant builders in Noida, Greater Noida and Yamuna Expressway to probe the alleged diversion of funds.

The chief minister met several top officials, including Meerut commissioner and Yamuna Expressway authority chairman Prabhat Kumar, in Lucknow on Tuesday. (HT Photo)

Homebuyers, for a long time, have been demanding forensic audit of each errant builder’s accounts. The chief minister took this decision in a meeting attended by several top officials, including Meerut commissioner and Yamuna Expressway authority chairman Prabhat Kumar, in Lucknow. Noida authority chief executive officer Alok Tandon and other senior officials also took part in the meeting.

“The government has decided to conduct an audit of accounts of every builder who has failed to deliver flats to homebuyers. The audit will cover accounts and construction status, including other aspects that are required to determine why the builders failed to finish projects despite collecting funds from homebuyers,” said Dr Prabhat Kumar, chairman of the Yamuna Expressway industrial development authority. Kumar is also the commissioner of Meerut division.

Having collected funds from investors, the builders allegedly diverted the money to start new projects instead of investing them in the complexes for which they had got the funds. As a result, thousands of homebuyers are suffering, as housing projects have been delayed by four to eight years in areas under Noida, Greater Noida and Yamuna expressway authorities.

Greater Noida has 203 housing projects, of which 82 are critical in nature and builders owe ₹7,200 crore to the authority. The Noida authority needs to recover ₹10,215 crore land dues from builders in around 90 housing projects. The Yamuna authority is struggling to recover around ₹3,000 crore from 13 builders.

Two Noida realty firms — Jaypee Group and Amrapali Group — are facing insolvency cases at the national company law tribunal after both failed to repay debt to banks. Most of the builders were supposed to start delivery of flats from 2012-13 onwards. However, they have failed to finish the projects and offer possession to buyers.

“For the past three to seven years, we have been protesting at every platform available to us demanding justice. But the government has not addressed our grievances,” Abhishek Kumar, president of Noida Extension flat buyers welfare association, said.

“The builders who are involved in cheating buyers must face legal action. The government should ensure justice to buyers and punish those builders, who cheated us. We hope the government will audit their accounts quickly and punish the builders without any further delay,” Kumar said.