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Noida: Two of 15 builders diverted funds collected from buyers, says audit report

The authority had on November 8, 2017, hired the agency to audit accounts of 51 defaulter builders, who are facing charges of diversion of funds.

noida Updated: Mar 19, 2018 22:50 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Noida authority,Currie & Brown,Noida builders
Noida, India - Feb. 12, 2018: Under Construction building, in Noida, India, on Monday, February 12, 2018. (Photo by Virendra Singh Gosain/ Hindustan Times) (To go with Vinod Rajput’s story)(Virendra Singh Gosain/HT PHOTO)

The Noida authority on Monday said Currie & Brown, an international consultancy firm, has completed its audit into the accounts of 15 more builders who failed to deliver flats on time. Of them, 13 builders did not divert any money, the audit report said.

The authority had on November 8, 2017, hired the agency to audit accounts of 51 defaulter builders, who are facing charges of diversion of funds.

In the first phase, the agency audited the accounts of 14 builders. It started the audit of the remaining 37 builders in the second phase in January.

“The agency has finished the audit of 15 more builders and had submitted a report in this regard. It had already audited 14 buildersin the first phase. The agency will finish the audit of the remaining builders in the next two weeks. Thirteen of 15 builders have not diverted any funds collected from buyers,” Alok Tandon, chief executive officer, Noida authority, said.

He said that as per the audit report, there are some gaps in the funds collected and spent by two builders.

“We will ask these two builders to explain about the funds collected and spent,” Tandon said.

In September 12, 2017, 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 on time.

The directive came after homebuyers demanded an audit of 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.

“Housing projects could not be delivered on time owing to various reasons and not because of diversion of funds. The reasons are that the banks stopped funding housing projects due to the uncertainty in the real estate sector. The projects were affected by cases in the National Green Tribunal and there was a disruption in cash flow as homebuyers stopped paying the remaining flat cost,” Tandon said.

There are a total of 94 stuck housing projects in Noida in which around 78,000 homebuyers have invested their money. The Noida authority is also struggling to recover around Rs 11,000 crore from these 94 defaulter builders.

“Our focus is to ensure that all builders finish housing projects and deliver flats to homebuyers,” Tandon said.

First Published: Mar 19, 2018 22:50 IST