GDA to initiate financial audit of builders failing to deliver projects on time

After receiving the green signal from the law department, the Ghaziabad Development Authority (GDA) is set to initiate the financial audit of 18 builders who have failed to meet the deadline of delivering their residential projects to homebuyers.

Many popular names like Ajnara, Ansal and KDP are included in the list.

According to the officials, these 18 builders are placed in the ‘C’ category as per the list prepared by GDA of over 115 builders in Ghaziabad.

The authority has placed these projects into three categories (A, B and C) on the basis of their work progress and compliance of the rules.

“Over 58 projects, which are progressing well, are placed under ‘A’ category. The projects, whose work progresses are satisfactory, are placed under ‘B’ category. The remaining 18 projects who failed on more than one counts resulting in delays are placed under C category.” a senior GDA official said.

Sources within GDA said that the move is to ascertain the reason behind the delay in the delivery of the projects.

“We will find out whether the builder has diverted a part or whole of the capital of a particular project to some other project,” a senior GDA official said.

Earlier, GDA had sought advice from the law department regarding the move to stay away from any controversy. The law department has given its nod and the audit will be started soon.

After the case of Amrapali builders, Real Estate Regulatory Authority (RERA) had directed GDA to assess the financial audit of builders who have not delivered projects within a set timeframe. Last month, in a meeting with RERA in Noida, GDA Vice Chairperson, Kanchan Verma was asked to carry out the audit with the help of a private agency on the line of Noida Authority.

GDA has started searching for a private agency to carry out audits. Sources within GDA said that the help could be sought from Noida Authority regarding the selection of the agency.