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Noida authority selects agency to audit builders’ accounts

Homebuyers hope that the selected agency will identify builders who, according to them, misused funds meant for developing 25 stuck housing projects. On Sept 12, UP chief minister Yogi Adityanath had directed the CEOs of Noida, Greater Noida and Yamuna Expressway authorities to audit builders who have failed to deliver flats to homebuyers

noida Updated: Nov 08, 2017 23:40 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
noida real estate,amrapali fallout,Noida homebuyers
There are 36,000 flats in the 25 housing projects stuck due to financial crisis in Noida. (Burhaan Kinu/HT Photo)

The Noida authority on Wednesday selected a private agency to audit accounts of builders who own the 25 housing projects that are stuck because of alleged financial constraint.

On September 12, Uttar Pradesh chief minister Yogi Adityanath had directed the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities to audit builders, who have failed to deliver flats to homebuyers. The directive came after homebuyers demanded an audit after the builders from whom they had purchased flats could not hand them over because the funds collected against flats were allegedly diverted to other projects. On September 20, the authority started the process of selecting a private agency for auditing, which was completed on Wednesday.

Homebuyers hope that the agency will identify the builders who, according to them, misused the funds meant for developing the housing projects.

“The agency would begin its job in a week from now. It has to finish its job in the next 50 days so we can take it forward and do justice to the demands raised by the homebuyers,” said Atal Kumar Rai, additional chief executive officer of the Noida authority. He added that global tenders were floated and a multinational agency was selected for conducting the audit.

In the first phase the agency would cover only 25 housing projects in the audit drive. Later, it will identify other builders whose accounts are to be audited.

There are 36,000 flats in these 25 projects that are stuck due to financial crisis. The audit is to be conducted on 11 points. These points include builders’ current financial capacity, funds collected from buyers, land bank and money spent on construction and other purposes, among others.

“The audit by a private agency will identify the builders, who have diverted the funds. If the builders are found to be diverting funds, the state government will conduct a forensic audit and book the builders as per law,” said another official of the Noida authority.

Box: Details that’ll be checked

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

Detailed status of each project, tower-wise

Total funds required for the project

Monthly statement showing money spent by the promoter

Authenticated documents showing availability of funds at 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

First Published: Nov 08, 2017 23:40 IST