Noida: Authority asks agency to complete audit of builders’ accounts in 45 days

The authority hired Currie & Brown to audit the accounts of homebuyers who failed to deliver flats on time

The Noida authority has asked the private agency that is auditing builders’ accounts to finish the process within the next 45 days.

A project of Amrapali, one of the 14 builders whose accounts are being audited by Currie & Brown. (Sunil Ghosh/HT Photo)

The authority hired Currie & Brown to audit the accounts of homebuyers who failed to deliver flats on time. So far, the agency has finished the audit of 14 builders’ accounts.

The authority had identified 51 builders and the audit was started on November 8, 2017.

The audit is being conducted to ascertain whether these builders have diverted funds collected from homebuyers.

“Currie & Brown, a private international consultancy firm, will submit its report on the audit of 14 builders on January 9. After the report is submitted, the agency will begin an audit of the remaining 37 builders,” Alok Tandon, the chief executive officer of the Noida authority, said.

Earlier, the consultant was to give a detailed presentation on the audit of 14 builders to the Noida authority on January 8.

“Since industries minister Satish Mahana will hold a meeting on important issues the same day, the presentation has been postponed to January 9. The agency will tell us whether any of the 14 builders diverted funds collected from buyers,” a Noida authority official said.

Homebuyers had sought audit of builders’ accounts to find out if builders had diverted the money meant for construction of their houses to other businesses.

On September 12, chief minister Yogi Adityanath had directed the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities to get an audit of builders’ accounts, who have failed to deliver flats to homebuyers, conducted.

The directive came after homebuyers demanded an audit of the builders from whom they had purchased flats. They alleged that builders could not hand over possession because funds collected against flats were diverted to other projects.

There are a total of 94 stuck housing projects in Noida. In these projects, around 78,000 homebuyers have invested their money and have been facing various issues because builders are yet to finish these projects, officials said.

Officials said that the 51 defaulting builders are to deliver around 25,000 flats in total.

“Of the 94 builders, the authority has decided to audit accounts of 51 builders. We had asked Currie & Brown to start with the audit of the accounts of 14 builders. Since it has almost completed the audit of 14 builders, it will do its job with respect to the remaining 37,” an official said.

Box: Details that will be checked in audit

List of flats booked and number of flats for which partial payment has been received

Name and address of each buyer who has made partial or full payment

Payment received for each flat

Payment received for each project

Tower-wise detailed status of each project

Total funds required for the project

Monthly statement showing money spent by the promoter

Authenticated documents showing availability of funds at the builder’s disposal

Authenticated five-year balance sheet of the builder

Details duly supported by the documents of available land bank and projects

Financial, technical and managerial capacity of the builder and present net worth, certified by a chartered accountant