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UP directs authorities to audit builders’ accounts

Homebuyers want clarity on where the money collected for construction of houses has been diverted

noida Updated: Sep 15, 2017 21:41 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Noida,Noida news,Noida homebuyers
Homebuyers have alleged that most builders have diverted funds collected for construction in their respective housing projects.(Virendra Singh Gosain/HT PHOTO)

The Uttar Pradesh government on Friday directed the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities to appoint an independent agency to audit land allotment to builders.

The direction was issued by the Uttar Pradesh infrastructure and industrial development department’s principal secretary, Alok Sinha, after chief minister Yogi Adityanath in a meeting on September 12 in Lucknow assured homebuyers of an audit to ascertain if builders diverted funds collected from buyers in a particular housing project.

Homebuyers have alleged that most builders have diverted funds collected for construction in their respective housing projects. Homebuyers demanded an audit from an independent agency to find out how the builders siphoned off funds. Buyers questioned where the money collected from them has gone because the same was not spent on construction.

Accounts of around 300 stuck housing projects in Noida, Greater Noida and Yamuna Expressway are likely to be audited.

“The chief minister headed the meeting that was attended by homebuyers and the three-minister committee in Lucknow on September 12. The CM directed for an audit into allotment to builders and also directed builders to deliver 50,000 flats in two months. I have sent a letter in this regard to comply with the decision taken in the meeting,” said Alok Sinha.

As per the directions, the CEOs of the three authorities are directed to prepare an action plan and send the same to the CM latest by September 18.

The three authorities have decided to hire an independent agency for conducting an audit into the allotment of housing plots to different builders.

“The agency will collect details of the number of flats a builder sold to buyers and the funds collected. The audit will cover the money collected from buyers, in the name of a flat sale, and where the same was spent. The agency will determine whether the builder diverted the funds or not,” a Noida authority official said.

Read I Six Noida builders booked for cheating home buyers

The three authorities will prepare terms and conditions under which an agency will conduct an audit.

“We will prepare the guidelines within a week and float the tender to hire an agency for the purpose. We hope to hire an independent agency, be it government or private, for the job in the next month,” an official said.

Officials said that audit outcome will be used as evidence in court if the builder has diverted funds.

First Published: Sep 15, 2017 21:41 IST