Audit finds that 11 developers in Noida diverted flatbuyer money
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Audit finds that 11 developers in Noida diverted flatbuyer money

Uttar Pradesh CM Yogi Adityanath has ordered an audit of the accounts of the real estate companies that collected money from flatbuyers but had not handed flats over yet.

Audit finds that 11 developers in Noida diverted flatbuyer money A stalled project in Noida

Noida Authority has released the details of 11 builders, who diverted Rs 1,500 crore paid by flatbuyers. The details are contained in a report by international agency Currie & Brown that was appointed by Noida Authority to audit the accounts of 14 real estate developers in Noida.

Santosh Kumar, Officer on Special Duty (OSD) of Noida Authority, told City Spidey that 11 out of 14 builders had diverted the money of flatbuyers. 

“The Authority will send notices to these 11 developers, who have to submit replies to the notices within a week,” he said.

On November 8, Noida Authority had hired Currie & Brown to audit the accounts of 51 "defaulter builders", all of whom are now facing charges of diversion of funds collected from homebuyers. As part of the first phase, the agency was tasked with auditing accounts of 14 developers. Accounts of the remaining 37 builders will be taken up in the second phase.

“The Authority had placed orders for the remaining 37 projects almost 10 days ago. In the next month, the remaining draft reports will be presented and the action plan will depend on the outcome of the final reports,” Kumar said.

In the first phase, the agency has presented the draft reports of 14 builders - Sikka Infrastructure Private Limited, Unitech Limited, Unitech Acacia Projects Private Limited, Aims Max Gardenia Developers Private Limited, Granite Gate Developers Private Limited, Omaxe Build Home Private Limited, Pebbles Prolease Private Limited, Logix City Developers Private Limited, Gardenia Aims Developers Private Limited, Supertech Limited, Three C Projects Private Limited, Red Fort Jahangir Properties Private Limited, Logix Infratech Private Limited and another project by Unitech Limited.

The 11 builders and their projects are as follows.

1. Logix City Developers Pvt Ltd: Blossom Zest in Sector 143

2. Unitech Ltd: Unihomes in Sector 117

3. Red Fort Jahangir Properties Pvt Ltd: Lotus Boulvard in Sector 100

4. 3C Project Pvt Ltd: Lotus Zing in Sector 168

5. Granite Gate Properties Pvt Ltd: Lotus Panache in Sector 110

6. Gardenia Aims Developers Pvt Ltd: Gardenia Glory in Sector 46

7. Unitech Acacia Projects Pvt Ltd: Golf City (Express City) in Sector 96, 97 and 98

8. Logix Infratech Pvt Ltd: Blossom Greens in Sector 143

9. Omaxe Build Home Pvt Ltd: Omaxe Spa, Omaxe Heritage, Grandwoods and Grand Court in Sector 93B (commercial and residential)

10. Pebbles Prolease Pvt Ltd: Heart Beat City in Sector 107

11. Unitech Ltd: Unnamed project in Sector 144

As part of the audit, the agency has collected information on the number of flats booked, the partial or full payment received so far, tower-wise status for each project, the total amount required for the project, the amount available with the builder and whether the builders can complete the projects.

In September last year, Uttar Pradesh Chief Minister Yogi Adityanath had directed the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities to audit the accounts of developers who had delayed delivery of flats to homebuyers.

There are over 96 projects that are stuck in Noida alone.