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Noida: Yamuna e-way authority gives builders 30 days to respond to audit report

Three builders, of the 28 that were audited, diverted funds collected from buyers to other firms

noida Updated: Feb 14, 2018 22:04 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Yamuna Expressway Industrial Development Authority,Yamuna Expressway,YEIDA
Two of the three builders are planning to take their case to the UP government saying the audit report ‘tarnished their image’.(Sunil Ghosh/HT Photo)

The Yamuna Expressway Industrial Development Authority (YEIDA) on Wednesday said the builders diverted funds to other companies and that led to a delay in delivery of housing projects.

“Three builders, of the 28 we audited, diverted funds collected from buyers to other firms. That means money, which was collected for a particular project, was diverted to other companies of the same builder. It affected the housing project. Two builders, while discussing their balance sheet, even admitted that they diverted funds to other firms,” Amarnath Upadhyay, additional chief executive officer, YEIDA, said. Upadhyay heads the committee that conducted the audit of the builders’ accounts.

Following the instructions of chief Minister Yogi Adityanath on September 12, 2017, the YEIDA chief executive officer Arun Vir Singh had formed the committee to audit accounts of 28 builders.

The committee has submitted its audit report to the CEO in which it has indicted eight builders of diverting funds collected in the name of constructing housing projects along the 165km Yamuna Expressway that connects Greater Noida with Agra.

However, the builders have rejected the authority’s claims. Two of the three builders are planning to take their case to the UP government saying the audit report “tarnished their image”.

“If the builders are not satisfied with the outcome of the audit report, then they can provide evidence to support their argument. We have given all builders 30 days to file their replies. We had given them ample opportunities to explain. Even now, they can provide proof and we will exclude their names from the list. If they will fail to satisfy our queries, then they will have to deposit the money diverted and finish their projects,” Upadhayay said.

Getambar Anand, chairman and managing director of ATS Builders and president of confederation of real estate developers association of India (CREDAI), a realtors’ lobbying body, said, “We will talk to the UP government as the report has tarnished the image of builders who are finishing their project on time and used the buyers’ money for the project alone.”

Meanwhile, homebuyers said the audit report has confirmed that builders misused funds.

“The YEIDA and the Uttar Pradesh government never bothered to address our issues for the past many years despite our complaints. The builders kept diverting funds and we had to suffer the consequences. We hope now that the government will do justice,” BN Gupta, a buyer, said.

First Published: Feb 14, 2018 22:04 IST